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A father plans to create a trust for the benefit of his 22-year-old son and wishes to take advantage of the gift tax annual exclusion. He has named a bank as trustee. Which of the following trust provisions would cause the gifts to be ineligible to qualify for the gift tax annual exclusion?
l. The trust income is to be paid to the son or accumulated at the discretion of the trustee.
II. The income is to be accumulated until the son reaches age 32 when all accumulated income and principal are to be distributed to him.
Suggested Answer: C
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7 comments · newest first
WE
Wei
11 months ago
Neither seems to affect the annual exclusion, right?
TO
Tonette
12 months ago
Both provisions could be problematic for the exclusion.
HY
Hyun
12 months ago
Surprised that accumulating until age 32 could disqualify it!
KA
Kami
12 months ago
I disagree, I believe I is fine for the exclusion.
AS
Ashanti
1 year ago
I think II makes the gifts ineligible.
JE
Jettie
1 year ago
I'm a bit unsure about this one. I know HBase is good for handling large datasets, but I'm not sure which specific data types it's not suited for.
HE
Herminia
1 year ago
Alright, time to put on my problem-solving hat. I'll need to carefully consider the file contents and the specific operations being performed to figure out the correct answer.