Tax benefits of making life time gifts in excess of the gift tax annual exclusion include all the following

Tax benefits of making life time gifts in excess of the gift tax annual exclusion include all the following

EXCEPT:
A . The gift tax paid on a gift made more than 3 years prior to the death of the donor avoids inclusion the donor’s gross estate.
B . Appreciation in the value of a gift of real property after the date of the gift increases the donor’s federal estate tax liability.
C . Income taxes can be saved if a high-income donor gives income-producing property to a lowincome donee.
D . Gift taxes are payable at the same tax rate as estate taxes.

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Answer: B