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Abstract

I. The Federal Gift Tax ... A. Legislative History ... B. Transfers Subject to Taxation

II. The Annual Exclusion ... A. Reasons for the Exclusion ... B. Annual Exclusion Amount ... C. Future Interest Limitation ... D. Burden of Proof

III. Availability of the Annual Exclusion for Certain Transfers … A. Income Interests ... B. Indirect Outright Transfers ... 1. Reciprocal Gifts ... 2. Gifts through Intermediaries ... C. Nonlapsing Demand Powers ... D. Lapsing Demand Powers ... 1. Crummey v. Commissioner ... 2. Internal Revenue Service's Post-Crummey Position … 3. Reciprocal Lapsing Demand Powers ... E. Naked and Semi-Naked Lapsing Demand Powers … 1. Internal Revenue Service's Position ... 2. Estate of Cristofani v. Commissioner ... 3. Post-Cristofani Developments

IV. Annual Exclusion Reform ... A. The Need for Reform ... B. Proposed Reform ... 1. The Annual Exclusion Amount ... 2. Qualifying Interests ... C. Judicial Implementation ... D. Legislative Implementation

V. Conclusion

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