5 Questions
What is the condition for a gift to be considered a present interest under IRC Section 2503(c)?
The gifted property and income may be expended by or for the benefit of the donee before attaining the age of 21, and will pass to the donee on attaining the age of 21.
What is the impact of discretionary distribution of trust income on the minor's present interest in the trust assets?
It usually results in the minor not being deemed to have a present interest in the trust assets.
What happens to the gifted property and income if the donee dies before attaining the age of 21 under IRC Section 2503(c)?
It will be payable to the donee’s estate or as appointed under a general power of appointment.
What is the purpose of IRC Section 2503(c) in the context of a minor's trust?
To ensure that gifts to individuals under the age of 21 are considered present interests under certain conditions.
What is the significance of IRC Section 2503(c) for the grantor's entitlement to the gift tax annual exclusion?
It provides a mechanism for the grantor to qualify for the gift tax annual exclusion when making gifts to minors.
Test your knowledge of trusts and estate planning with this quiz on irrevocable trusts and beneficiary distributions. Explore the rules and calculations involved in trust payments and asset distribution to beneficiaries.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
