JoeTaxpayer <JoeTaxpayer[at]comcast.net> wrote:

- quote -

If you use a trust other than a UGMA or 529 plan, it might be
considered a gift of a future interest, and as a result would not
qualify for the annual exclusion. This is another thing that a Crummey
Trust can be used for, in addition to as an insurance trust, to avoid
this problem.

Stu

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Gary wrote:
- quote -

Limit on the low side? No. I set up accounts the week JaneTaxpayer 2.0
was born.

You and anyone else may gift the child $12K each year. So, if her mom is
around, it's $24K for both of you. Keep in mind, UGMAs become hers at 18
or 21, depending on the state, I believe. If this is a long term plan,
the use of a trust may be wise. If these funds are for college, a 529
can be a good idea. If you go the 529 route, you are allowed to gift 5
years out, this year gifting $60K with no gift tax due.

Joe
www.blog.joetaxpayer.com

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"Gary" <ghorne2000[at]yahoo.com> wrote:

- quote -

I think you have to be over 18 to do that.

If you're talking about an age limit for your child, there is no limit.
However for children under 18, you will legally be in control of those
funds. As a result you should make gifts in a way that makes it clear
that the money legally belongs to your child, and that he can sue you
later if you don't manage it in his best interests.

One way to do that would be to make the gift under the Uniform Gift to
Minors Act in your state.

Stu

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Gary wrote:
- quote -

$13,000 to any person.

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I have a 4 year old that I would like to start giving the annual 12k gift to, is there an age limit ?


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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >