Gift in trust
Gift in trust is a gift that withholds the legal title from the donee. The title leaves donor powerless to estinguish the trus unless trust contains the power of revocation. Gift givers can give gifts in excess of the annual exclusion without paying taxes by establishing a special type of trust.
Gift in trust helps transfer money to future generations. Transferring wealth from one generation to the next using a will can be complicated. Using proper trust configuration can help to transfer money with minimum taxes applied.
- Dukeminier, J., & Sitkoff, R. H. (2014). Wills, trusts, and estates. Wolters Kluwer Law & Business.
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