Section 2502(d) provides that the donor shall pay the tax. If the donor dies before the tax is paid the amount of the tax is a debt due the United States from the decedent's estate and his executor or administrator is responsible for its payment out of the estate. (See § 25.6151-1 for the time and place for paying the tax.) If there is no duly qualified executor or administrator, the heirs, legatees, devisees, and distributees are liable for and required to pay the tax to the extent of the value of their inheritances, bequests, devises, or distributive shares of the donor's estate. If a husband and wife effectively signify consent, under section 2513, to have gifts made to a third party during any “calendar period” (as defined in § 25.2502-1(c)(1)) considered as made one-half by each, the liability with respect to the gift tax of each spouse for that calendar period is joint and several (see § 25.2513-4). As to the personal liability of the donee, see paragraph (b) of § 301.6324-1 of this chapter (Regulations on Procedure and Administration). As to the personal liability of the executor or administrator, see section 3467 of the Revised Statutes (31 U.S.C. 192), which reads as follows:
Every executor, administrator, or assignee, or other person, who pays, in whole or in part, any debt due by the person or estate for whom or for which he acts before he satisfies and pays the debts due to the United States from such person or estate, shall become answerable in his own person and estate to the extent of such payments for the debts so due to the United States, or for so much thereof as may remain due and unpaid.
As used in such section 3467, the word “debt” includes a beneficiary's distributive share of an estate. Thus if an executor pays a debt due by the estate which is being administered by him or distributes any portion of the estate before there is paid all of the gift tax which he has a duty to pay, the executor is personally liable, to the extent of the payment or distribution, for so much of the gift tax as remains due and unpaid.
[T.D. 7238, 37 FR 28726, Dec. 29, 1972, as amended by T.D. 7910, 48 FR 40373, Sept. 7, 1983]
Notes of Decisions
Cited in
9
cases, 1965–2015 · leading case:
Est. of Lock, 122 Cal. App. 3d 892 (Cal. Ct. App. 1981).
Est. of Lock, 122 Cal. App. 3d 892 (Cal. Ct. App. 1981).
“2502-2 of the accompanying Code of Federal Regulations pertains more specifically to the problem presented here; it states, in relevant part: "Section 2502(d) provides that the donor shall pay the tax. If the donor dies before the tax is paid the amount of the tax is a debt due…”
Est. of Giovacchini v. Comm'r, 2013 T.C. Memo. 27 (Tax Ct. 2013).
· cites it 4× “If the donor dies before paying the gift tax, the personal representative of the donor's estate is responsible for paying the tax out *57 of the estate, as a debt due the United States from the estate.”
Steinberg v. Comm'r, 141 T.C. 258 (Tax Ct. 2013).
· cites it 2× “The gift tax is imposed upon the donor's act of making the transfer, rather than upon receipt by the donee, and it is measured by the value of the property passing from the donor, rather than the value of enrichment resulting to the donee.”
Cummings v. Cummings, 236 Cal. App. 2d 659 (Cal. Ct. App. 1965).
“” ( 26 C.F.R., § 25.2502-2 .) Respondent nevertheless contends that the trial court’s order was correct in that it was a proper application of sections 970-977 of the Probate Code governing the proration of federal estate taxes.”
Est. of O'Neal v. United States, 81 F. Supp. 2d 1205 (N.D. Ala. 2000).
“” ( 26 C.F.R., § 25.2502-2 .) ■ The primary gift tax liability under both California and federal statutes thus rests with the donor or the donor’s estate.”
Est. of O'Neal v. United States, 291 F. Supp. 2d 1253 (N.D. Ala. 2003).
· cites it 2× “§ 2513 (d); 26 C.F.R. §§ 25.2502-2 , 25.2511(d). Thus, the Government contends, Mr.”
Lock v. Superior Court, 122 Cal. App. 3d 892 (Cal. Ct. App. 1981).
“2502-2 of the accompanying Code of Federal Regulations pertains more specifically to the problem presented here; it states, in relevant part: “Section 2502(d) provides that the donor shall pay the tax. If the donor dies before the tax is paid the amount of the tax is a debt due…”
In re the Est. of Hjersted, 135 P.3d 216 (Kan. Ct. App. 2006).
· cites it 2× “” 26 C.F.R. § 25.2502-2 (2005). Maryam takes issue with Lawrence’s reliance on federal tax law, arguing such merely determines the taxability of interests and rights in property.”
Steinberg v. Comm'r, 145 T.C. 184 (Tax Ct. 2015).
· cites it 2× “The gift tax is imposed upon the donor's *49 act of making the transfer, rather than upon receipt by the donee, and it is measured by the value of the property passing from the donor, rather than the value of enrichment resulting to the donee.”
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