26 U.S.C. § 2503: Taxable gifts

The term “taxable gifts” means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following). In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year. Where there has been a transfer to any person of a present interest in property, the possibility that such interest may be diminished by the exercise of a power shall be disregarded in applying this subsection, if no part of such interest will at any time pass to any other person. $10,000, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 2016” in subparagraph (A)(ii) thereof. may be expended by, or for the benefit of, the donee before his attaining the age of 21 years, and pass to the donee on his attaining the age of 21 years, and in the event the donee dies before attaining the age of 21 years, be payable to the estate of the donee or as he may appoint under a general power of appointment as defined in section 2514(c). Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter. as tuition to an educational organization described in section 170(b)(1)(A)(ii) for the education or training of such individual, or to any person who provides medical care (as defined in section 213(d)) with respect to such individual as payment for such medical care. If any individual waives, before the death of a participant, any survivor benefit, or right to such benefit, under section 401(a)(11) or 417, such waiver shall not be treated as a transfer of property by gift for purposes of this chapter. such loan is to an organization described in section 501(c)(3) and exempt from tax under section 501(c) (other than a private foundation), and the use of such work by such organization is related to the purpose or function constituting the basis for its exemption under section 501. The term “qualified work of art” means any archaeological, historic, or creative tangible personal property. The term “private foundation” has the meaning given such term by section 509, except that such term shall not include any private operating foundation (as defined in section 4942(j)(3)). Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to transfers after December 31, 1981 . an instrument executed before the date which is 30 days after the date of the enactment of this Act [ Aug. 13, 1981 ] provides for a power of appointment which may be exercised during any period after December 31, 1981 , such power of appointment is expressly defined in terms of, or by reference to, the amount of the gift tax exclusion under section 2503(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (or the corresponding provision of prior law), the instrument described in subparagraph (A) has not been amended on or after the date which is 30 days after the date of the enactment of this Act [ Aug. 13, 1981 ], and the State has not enacted a statute applicable to such gift under which such power of appointment is to be construed as being defined in terms of, or by reference to, the amount of the exclusion under such section 2503(b) after its amendment by subsection (a),