UNDERSTAND THE UNIFIED GIFT AND ESTATE TAX SYSTEM FOR THE SERIES 6 EXAM

The Series 6 Exam asks questions about gift and estate taxes, including the annual gift limit, the lifetime exclusion, and the taxations of securities received as a gift or by inheritance. How do I know this? I know that there are tax questions on the Series 6 because FINRA publishes Content Outline for the Series 6 that list these tax considerations in Section 3.3.

Bob Eder in his Study for the Series 6 Exam presents a detailed discussion of gift and estate taxes in Chapter 8. Here is a sample of Bob Eder's discussion and treatment:

Unification of Estate and Gift Exemption (3.3)

When talking about the $12.92 million life time exclusion, we must remember that this amount applies to not only the size of one's estate but also to the amount of gifts that a person gives during his or her lifetime that exceed the exempted amount. Currently, for tax year 2023, a taxpayer may give up to $17,000 per year to another person without having to pay tax on this amount. This amount does not count to any lifetime exemption on gifts. However, once a person makes gifts whose total amounts to more $17,000 per person, or whatever the current year's gift maximum is, than any gift in excess over the $17,000 will reduce the giver's estate exemption of $12.92 million by the amount of the excess.

Here is the link to FINRA's Content Outline for the Series 6 Exam. See the references to Gift and Estate Taxes in FINRA's Series 6 Content Outline, Section 3.3.

Study for the Series 6 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link for Bob Eder's Study for the Series 6 Exam on Amazon.

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's Study for the Series 6 Exam, or questions in general about the Series 6 Exam, or about Gift and Estate Taxes, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. 

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