When you make a lifetime gift you are not only entitled to one time tax credit, but can also receive an annual exclusion. The annual exclusion is available annually and is doubled for gifts made jointly by husband and wife.

However, the IRC requires that only gifts of “present interests” are eligible for the annual exclusion. This is unique to the annual exclusion and does not apply to the one time exclusion. A gift of a present interest is one where the gift is immediately in the control of the person receiving the gift. This can complicate matters, particularly when you gift a partial interest in your property, such as through an FLP or LLC. However, since the interest is in immediate control of the donee, it is likely that a gift of an interest in a company would be eligible for an annual exclusion.