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

Term of the Day

Noninsured plans

Defined benefit pension plans that are not guaranteed by life insurance products. Related: Insured plans.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio