Jonathan transferred $90,000 of cash to a trust this year for the benefit of Hannah, age 10. The trustee has the discretion to distribute income or corpus (principal) for Hannah's benefit and is required to distribute all assets to Hannah (or her estate) not later than Hannah's 21ˢᵗ birthday. What is the amount of the taxable gift?

Question

Quizplus · Accepted Answer

$90,000 minus $15,000 (2018) annual exclusion
Gifts in trust for a minor will qualify for the annual exclusion if the property can be used to support the minor and any remaining property is distributed to the child once he or she reaches age 21.

Jonathan Transferred $90,000 of Cash to a Trust This Year