Irrevocable Trusts and Beneficiary Distributions Quiz

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. (correct)

The gifted property and income may only be expended by the guardian until the minor attains the age of 21.

The gifted property and income may be expended only by the trustee before the minor attains the age of 21.

The gifted property and income must be held in the trust until the minor attains the age of 21 without any expenditure.

It allows the minor to have full control over the trust assets.

It automatically guarantees the minor's present interest in the trust assets.

It leads to the immediate transfer of trust assets to the minor.

It usually results in the minor not being deemed to have a present interest in the trust assets. (correct)

It will be payable to the donee’s estate or as appointed under a general power of appointment. (correct)

It will be forfeited and returned to the grantor.

It will automatically pass to the minor's siblings.

It will be distributed to the trustee for further management.

<p>To ensure that gifts to individuals under the age of 21 are considered present interests under certain conditions.</p> Signup and view all the answers

<p>It provides a mechanism for the grantor to qualify for the gift tax annual exclusion when making gifts to minors.</p> Signup and view all the answers