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Seek's avatar

I would guess the concept of gifting is a remnant of the upper classes gifting a pittance on to the faithful old retainer. There is a lifetime limit to the recipient or the annual limit that changes upon occasion. Can't have granddad giving away too much of the old pile, but a little something is proper. The limits have changed in the last 50 yrs but the principle is well established in the tax code.

The wealthy or verging on wealthy use this for estate planning and the grifters are just taking advantage of something that was set up by their "Betters" to serve a different purpose.

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Lefty Mark's avatar

Everything that I have read since yesterday backs this up. Frankly, I'm astonished. A waitress who receives $200 in tips has to report every penny of that to the IRS as taxable income, but the $10K that some guy receives from his rich great-aunt is his free and clear, and the IRS doesn't even want to know about it. Weird.

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