Determine whether each of the following situations involves the transfer of a present interest or a future
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Determine whether each of the following situations involves the transfer of a present interest or a future interest.
a. A trust is established for the donor’s 8-year-old daughter.The trustee can decide how much income to pay the daughter each year. At age 21, the daughter will receive all of the accumulated income and principal.
b. A trust is established by transferring $10,000 each year for each of three beneficiaries who are given 30 days after receiving notice of the transfer to demand payment of the $10,000.
c. All rights to a life insurance policy are given to the donor’s son.
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Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
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