Section 1: 30–40%T4
Estate and Gift Tax Planning
Exam Insight
The unified transfer tax system links lifetime gifts and transfers at death, and TCP tests your ability to use exemption, the marital deduction, trusts, and valuation tools to minimize transfer tax. You must weigh lifetime gifting against the step-up in basis available at death.
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What AICPA Wants You to Know
- 1Explain the unified transfer tax system and the use of the lifetime exemption against gifts and the estate.
- 2Apply the 2026 basic exclusion of 15,000,000 per decedent made permanent under the OBBBA and the 40 percent top rate.
- 3Use the unlimited marital deduction, portability of the DSUE, and bypass (credit-shelter) trusts.
- 4Identify valuation discounts and how grantor trusts shift income and growth.
- 5Compare charitable giving vehicles and their estate and income tax benefits.
- 6Weigh the lifetime gift carryover basis against the step-up in basis at death.