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Gift splitting

Definition

A technique used to avoid a gift tax in which a large sum of money to be given by two parents to a child is halved and given to the child separately. For example, a husband and wife each donate $10,000 to their child rather than one parent donating $20,000.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University


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