904 / When is the “split-gift” provision available?
When one of two spouses makes a gift to a third person, it may be treated as having been made one-half by each if the other spouse consents to the gift.1
Planning Point: The split-gift provision enables a spouse who owns most of the property to take advantage of the other spouse’s annual exclusions (see Q 905) and unified credit (see Q 914). Thus, a spouse, with the other spouse’s consent, can give up to $38,000 (2 × $19,000 annual exclusion in 2025) a year to each donee free of gift tax, and, in addition, will have both their unified credits to apply against gift tax imposed on gifts in excess of the annual exclusion. Moreover, by splitting the gifts between spouses, they will fall in lower gift tax brackets.
Where spouses elect to use the “split-gift” provision, the consent applies to all gifts made by either spouse to third persons during the calendar year.2 The consent must be made on the Form 709. By consenting to gift splitting, a spouse may assume joint and several liability for any gift tax assessed on the gift.3 A technical advice memorandum permitted a taxpayer to elect after the spouse’s death to split gifts with his spouse where the gifts were made by the taxpayer shortly before the spouse’s death.4
1. IRC § 2513; Treas. Reg. § 25.2513-1.
2. IRC § 2513(a)(2).
3. Williams v. U.S., 378 F.2d 693 (Ct. Cl. 1967).