A unified tax credit is a certain amount of assets that each person is allowed to gift to other parties without having to pay gift, estate, or generation-skipping transfer taxes.
She is still required to file Form 709 to report what she gifted, so it can be applied against the Unified Credit. Every gift given must be applied. In the event gifts exceed this amount, they begin to be taxed. Gifts given during life are subtracted as they are given.
The basic exclusion amount for determining the unified credit against the estate tax will be $11,580,000 for decedents dying in calendar year 2020.
