A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:

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Alicia Mcguire

6 May, 14:07

A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:

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Kash Kim · Answer 1

Complete Question. A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:

The beneficiary has the right to contribute to the trust. The beneficiary has the right to withdraw a contribution (gift) to the trust. The beneficiary has the right to make income distributions to the trust. The beneficiary has the right to make corpus contributions to the trust.

Answer:

2. The beneficiary has the right to withdraw a contribution (gift) to the trust.

Explanation:

The Crummey power, to convert future interest gift to a present interest gift beneficiaries are allowed to withdraw contributions to a trust within a specific period of time usually 30 to 60 days.

The total withdrawal amount should be equal to the annual gift tax exclusion in a specific time period otherwise the asset will belong to the trust.