Gift In Trust

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Dictionary Says

Definition of 'Gift In Trust'

An indirect bequest of assets to a beneficiary by means of a special legal and fiduciary arrangement. The purpose of a gift in trust is to avoid taxes on gifts that exceed the annual gift tax exclusion amount. Gift taxes are almost always paid by the gift giver and if they exceed $13,000 in one year the excess is taxable.
Investopedia Says

Investopedia explains 'Gift In Trust'

Gift givers can give gifts in excess of the annual exclusion without paying taxes by establishing a special type of trust, such as a Crummey trust. A gift to a Crummey trust allows the beneficiary to withdraw the gift for a limited time, which makes the gift a present interest and makes it eligible for the gift tax exclusion. If the gift did not have these limited-time withdrawal rights, it would be considered a future interest and it would be subject to gift taxes. That being said, it is generally understood that the beneficiary will not actually withdraw the funds during the withdrawal period. Gifts in trust are commonly used by parents or grandparents who want to establish a trust fund for their children or grandchildren.
Search results for

'Gift In Trust'

  • Saving Money With A Private Annuity Trust

    http://www.investopedia.com/articles/retirement/06/PrivateAnnuity.asp
    ... her lifetime. Therefore, the property transfer to a trust is not a gift
    and is not subject to gift taxation. Furthermore, when the ...

  • How To Set Up A Trust Fund If You're Not Rich

    http://www.investopedia.com/articles/pf/12/set-up-a-trust-fund.asp
    ... proper planning, the assets can be exempt from estate and gift taxes. These tax
    exemptions are a primary reason that some people set up an irrevocable trust. ...

  • Tax-Efficient Wealth Transfer

    http://www.investopedia.com/articles/retirement/07/reduce-estate-tax.asp
    ... One of the best ways to move assets into an IDT is to combine a modest
    gift into the trust with an installment sale of property. ...

  • Series 66 Study Guide - Analyzing Your Client's Financial Profile ...

    http://www.investopedia.com/exam-guide/series-66/analyzing-financial-profile/corporate-trust-income-tax.asp
    ... 3.5 Tax Issues; 3.6 Netting Capital Gains and Losses and Wash Sales; 3.7 Corporate
    and Trust Income Tax; 3.8 Estate and Gift Taxes; 3.9 Non-Financial ...

  • Should You Put Your Faith In A Trust?

    http://www.investopedia.com/articles/retirement/08/trust-company.asp
    ... Comprehensive income, gift, trust and estate tax return preparation and
    planning are also standard fare for many trust companies. ...

  • Series 65 Study Guide - Taxation Issues - Corporate and Trust ...

    http://www.investopedia.com/exam-guide/series-65/taxation/corporate-trust-income-tax.asp
    ... Basis; 13.4 Netting Capital Gains and Losses and Wash Sales; 13.5 Corporate and
    Trust Income Tax; 13.6 Estate and Gift Taxes. 14. Retirement ...

  • Series 66 Study Guide - Analyzing Your Client's Financial Profile ...

    http://www.investopedia.com/exam-guide/series-66/analyzing-financial-profile/estate-gift-taxes.asp
    ... marital exclusion that applies to direct transfers or certain transfers in trust
    to the ... Which of the following gift given in one year from an aunt to her ...

  • Series 65 Study Guide - Taxation Issues - Estate and Gift Taxes ...

    http://www.investopedia.com/exam-guide/series-65/taxation/estate-gift-taxes.asp
    ... marital deduction that applies to direct transfers or certain transfers in trust
    to the ... Which of the following gift given in one year from an aunt to her ...

  • A Look At The Generation-Skipping Transfer Tax

    http://www.investopedia.com/articles/tax/09/generation-skipping-transfer-tax-gst.asp
    ... The transferor can give the gift directly to the skip person while still living
    or transfer the gift to a generation skipping trust to be transferred to the ...

  • Top 7 Estate Planning Mistakes

    http://www.investopedia.com/articles/retirement/08/estate-planning-mistakes.asp
    ... As such, a credit shelter trust should be established that shields the assets of
    the ... Wealth Transfer for more on this strategy.) Failure to Gift Assets Before ...

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