Flashcards in Estates, Gifts, Trusts Deck (1):
There's a situation where someone sets up a trust for their kid, they transfer a bond in there and the interest accumulates. At age 21 the kid or successor in interest gets the trust when she's 21. PV of interest is x. Is any of this eligible for gift tax treatment?
Or actually says "excludable from taxable gifts" same thing
Partial gifts aren't eligible for gift tax exclusion. Now what's partial, or what makes this partial - you have to actually give it, without strings, they have to be able to use it.
Now there is an exception to this, kids, but you can keep your kid from getting it right away, but not after their 21. You have to give them complete control before age 21.