For Federal gift tax purposes, when a transfer is made to an irrevocable trust, the transfer is considered a gift to the beneficiaries of the trust and not to the trustee or the trust itself.

Question

Quizplus · Accepted Answer

When a transfer is made to an irrevocable trust, it is treated as a gift to the beneficiaries of the trust and not to the trustee or the trust itself for Federal gift tax purposes. This is because the beneficiaries have a vested interest in the trust property and are considered the true recipients of the gift.

For Federal Gift Tax Purposes, When a Transfer Is Made