Setting up a trust to benefit a minor can:

Question

Quizplus · Accepted Answer

A trust set up to benefit a minor can gain an annual exclusion even though no present interest is conveyed because the trust is considered a gift. It can also protect the donor against the minor's unwise use of the funds because the trustee, who is responsible for managing the trust, is obligated to act in the best interest of the minor. Finally, a trust can accumulate income for future use, like college tuition, since the trustee can use the income for the minor's benefit without distributing it to them directly. Therefore, all of the options listed are correct.

Setting Up a Trust to Benefit a Minor Can