What is required for a married couple to elect gift splitting?

Both spouses must be U.S. citizens or residents and consent, and a Form 709 must be filed

They must file a joint income tax return

The gift must be of community property

Only the donor spouse signs Form 709

When is Form 706 generally due?

9 months after the date of death, with a 6-month extension available

12 months after the date of death

April 15 of the year after death

6 months after the date of death, with an automatic 6-month extension available

What does the portability election allow?

A surviving spouse to use the deceased spouse's unused exclusion (DSUE) amount

A surviving spouse to inherit the decedent's IRA without taxes

An estate to file Form 706 without paying tax

A decedent's estate to deduct all taxable gifts the decedent made within 3 years of death

Which transfer qualifies for the unlimited marital deduction for estate tax purposes?

Property passing outright to a surviving spouse who is a U.S. citizen

A terminable interest given to a citizen spouse without a QTIP election

Property left to a non-citizen spouse outright

A decedent owned a life insurance policy on her own life payable to her son. Is the death benefit included in her gross estate?

Yes, because she held incidents of ownership at death

Only the cash surrender value is included

No, because it is paid directly to a named beneficiary, not the estate

No, life insurance is never included

Estate and gift tax

For 2025 you can give $19,000 per person gift-tax-free each year, and a unified $13,990,000 exclusion shelters larger lifetime gifts plus your estate; gifts over the annual exclusion go on Form 709 (due April 15), and estates file Form 706 nine months after death.

Updated 2026-09-23 · 5 sources · By the EnrolledAgentKit team

Exam part

Part 1

Individuals

IRS domain

Specialized Returns for Individuals

11 of 85 scored Qs

Tax year tested

2025

2026-27 SEE

Practice questions

10 free below

The rules the exam tests

Figures for tax year 2025, the year the 2026-27 SEE tests. Verify against the cited primary source.
Rule	What it says (2025)	Source
Annual exclusion (2025)	$19,000 per donee; $38,000 with gift splitting	Rev. Proc. 2024-40
Non-citizen spouse exclusion	$190,000	Rev. Proc. 2024-40
Basic exclusion / GST exemption	$13,990,000 (2026: $15,000,000 under OBBBA)	Rev. Proc. 2024-40; OBBBA
Top rate	40%	IRC 2001
Unlimited exclusions	Tuition and medical paid directly to the provider; gifts to a U.S. citizen spouse	IRC 2503(e), 2523
Form 709	Due April 15 of next year; required for gift splitting	IRC 6075
Form 706	Due 9 months after death; 6-month extension (Form 4768)	IRC 6075
Portability	DSUE elected on timely 706; late election up to 5 years (Rev. Proc. 2022-32)	IRC 2010(c)
Alternate valuation	6 months after death, only if it lowers both gross estate and tax	IRC 2032

Worked example

Facts: In 2025 Maya (married, U.S. citizen) gives her son $60,000 cash and pays $25,000 of her granddaughter’s tuition directly to the university. She and her husband elect gift splitting.

Result: Tuition paid directly is excluded without limit. The $60,000 gift is split: $30,000 each, minus a $19,000 annual exclusion each = $11,000 taxable gift per spouse, absorbed by each spouse’s lifetime exclusion. No tax is due, but Form 709 is required (both spouses consent).

Exam traps

Annual exclusion applies only to present interests.
Gift splitting requires a Form 709 even if no tax results.
Joint property with a spouse: 50% in the first spouse’s estate regardless of who paid.
Life insurance is in the estate if the decedent held incidents of ownership.