(a) Minor Child Becomes an Adult.

A minor child's specific exemption of $12,000 ceases upon reaching 18 years of age when the $5,000 specific exemption of an adult child then becomes applicable. Thus, a donor who has used $5,000 or more of the specific exemption with respect to gifts to a minor child is not entitled to any additional specific exemption to the same donee after the child reaches majority at 18 years of age. For example, if A makes a gift of $10,000 to B, his minor child, in 1973, the net gift after excluding the $3,000 annual exemption is $7,000 which is within the $12,000 specific exemption of a minor child donee. In 1974 B reaches majority and thereafter A makes a further gift to B of $20,000. No additional specific exemption is applicable since A has used more than a $5,000 specific exemption with respect to B while B was a minor. The later gift would, however, be subject to an annual exemption of $3,000.

(b) Specific Exemption of a Spouse on and after January 1, 1976.

By legislative act the specific exemption of a spouse donee on and after January 1, 1976 is $60,000, the previous exemption being $5,000 (see Revenue and Taxation Code Section 15421 before and after the 1975 amendment). To the extent that the prior net gifts have not exceeded the $60,000 an additional specific exemption is allowable until that amount is reached in respect to net gifts made after January 1, 1976 to the same donee. If, however, the prior net gifts equal or exceed the $60,000 amount, no further specific exemption is allowable.