A tax minimization scheme that involves spreading the gift over numerous calendar years to avail of lower tax liability is known as?

The correct answer refers to a tax minimization strategy where an individual distributes a large gift across multiple years. This approach helps to take advantage of the annual gift tax exclusion limit, allowing the donor to minimize their taxable estate and reduce or avoid gift taxes altogether. By spreading out the gift, the donor can provide substantial assistance without exceeding the exclusion limit in any single year, thus lowering the overall tax liability associated with the gift.

Other options do not capture the essence of this tax strategy. The phrase "Spread-out method" does not specifically refer to gift tax rules or strategies. "Donation of life insurance" involves different tax considerations related to insurance policies and is not about spreading gifts over time. As for "Void donation," this term does not pertain to established tax strategies related to limiting tax liability through gift-giving practices. Each of these alternative options fails to reflect the underlying principles of effectively managing gift taxes via yearly distribution.