Congress left it up to the IRS to determine through regulations whether the excessive gift amounts should be clawed back or allowed. It appears that Congress intended for the IRS to allow such gifts through a reading of the legislative history of the tax cuts. However, it is not known whether the IRS agrees with that assessment.
Whatever the IRS decides to do there will likely be court challenges to their actions. A definitive answer to what will happen is unlikely to come anytime soon. That means those who utilize the new law to give lifetime gifts in excess of $5.5 million, are taking on some risk in doing so.
An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances, including the best way to carry out gifting.
