Conference nyoss1::market_investing

    Strictly speaking, there are no tax benefits: a gift via Giftrust is
    a gift of future interest and so is not excludable under the $10,000
    per giver per givee per year system: you have to file a gift-tax
    return.
    
    Unlike the $10,000 stuff, it can be set up to last as a trust long
    after the recipient passes 21.  That extra control is what you're
    buying along with the management.
    
    As part of a long-term plan it may help reduce the total tax burden
    on your estate (by paying now on X dollars rather then after your death
    on far more than X) and so can be called beneficial in that sense.
    
    		-John Bishop

    
    Who has to pay tax on the gift of future interest, at what time, and at
    whose tax rate?
    
    

    It's the standard gift tax rate, paid at the time of the gift,
    and the giver pays.  Gift tax works almost exactly like estate
    taxes: starts high and goes higher.
    
    		-John Bishop

    
    So if you make a donation to a child in the amount of $10K, you'll pay
    taxes on it today if it is a gift of future interest, but you'll pay no
    taxes if you just place it into a custodial account.  (sounds like a
    pretty bad deal)
    
    But unlike a custodial account, the money does not become the childs'
    when they reach a certain age...  you still maintain some kind of
    control over the funds (I'm a bit fuzzy about this part).
    
    Thanks for the explanation... GiftTrust doesn't sound like its for me.
    
       /Jim
    

    Uniform Gift to Minors  -- they always get it at 18, 10K rule applies.
    Irrevocable Trust -------- if they get it before 21, then 10K rule
    			       applies, otherwise gift is taxed
    Giftrust ----------------- always taxed, but can terminate at any age.
    
    			-John Bishop