Finally, even if none of the other provisions allows you to avoid gift tax, you have a lifetime exemption amount that will generally cover you. In 2021, that amount is $11.7 million.
What if no other exclusion applies?
Say you gave $15,000 each to nine friends in 2021 and $100,000 each to your spouse and your child. The nine gifts are all covered by the annual exclusion. For your spouse, the spousal exemption covers the entire amount. Only the child’s gift is subject to tax, with the first $15,000 tax-free and the remaining $85,000 uncovered.
However, you’re allowed to apply