In the net gift technique, what does the donee agree to do?

In the net gift technique, the donee agrees to pay the gift tax that is triggered by the transfer of the gift. This arrangement is often employed as part of estate planning strategies to manage tax liabilities associated with gifting assets.

The primary rationale behind the net gift technique is to reduce the overall taxable estate of the donor while minimizing the impact of the gift tax burden. By having the donee (the recipient of the gift) assume the responsibility for paying the gift tax, the donor can effectively transfer more value without incurring immediate tax consequences for themselves. The donee benefits from the gift, even after accounting for the tax liability, which can still be a financially advantageous situation.

The other options highlight various concepts related to estate and gift taxation, but they do not accurately describe the specific agreement made by the donee in the context of the net gift technique.