Question

5. William makes a gift of stock worth $20 million to his wife Melinda. Will William have to pay gift tax on the transfer, and if not why not?

Answer 1

Answer : Transfer of stock as gift to spouse is not taxable. And William do not ahve to pay tax on the transfer.

There are certain exemptions on gift tax, one of which is gift to citizen spouse. The unlimited marital deduction allows to give any amount of money or property to your spouse, either during your lifetime or on your death, without having any liablity to federal or a state gift tax. But there is condition that she should be a U.S. citizen.

In this case as nothing given, so we have assumed William's wife melinda is US citizen.