Gift splitting is a tax strategy that allows a married couple to combine their individual annual gift tax exclusions and unified estate and gift tax credits, enabling them to give a larger gift to a recipient without incurring gift tax liability.
Gift Tax Exclusion allows taxpayers to give away a certain amount of money or property without having to pay federal gift tax on the transfer. The annual exclusion amount was $13,000 per donee in 2011, indexed for inflation.
