Gift tax

A gift tax is a transfer tax imposed on certain transfers of a gratuitous nature where there is no consideration or the transfer is for less than market value. In other words, people may be taxed for giving gifts. There are parameters over why and when someone may be taxed for giving a gift. The person giving the gift is taxed, and generally not the person receiving the gift.
See more at Wikipedia.org...

Noun
1. a tax imposed on transfers of property by gift during the lifetime of the giver
(hypernym) tax, taxation, revenue enhancement

A tax assessed on the giver of a property or asset as a gift. A $10,000 federal gift tax exemption exists per recipient. See: gift splitting.