Grand Ways of Making Completed Gifts to Grandchildren

UTMA Accounts Grandparents have an option to fund accounts under the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).The grandparents could hold investment and distribution control, but the funds must be distributed to the grandchild once he or she is no longer a minor....

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Bibliographic Details
Published in:Pennsylvania CPA Journal 2024-01, Vol.94 (4), p.9-9
Main Author: Balduzzi, Brian M
Format: Article
Language:English
Subjects:
Beneficiaries
Crummey trusts
Exclusion
Gift taxes
Grandparents
Tax courts
Online Access:Get full text
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Summary:UTMA Accounts Grandparents have an option to fund accounts under the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).The grandparents could hold investment and distribution control, but the funds must be distributed to the grandchild once he or she is no longer a minor. [...]they may be includible in the custodian's taxable estate while the grandchild is a minor. 2503(c) Minor's Trusts Grandparents may also establish and fund an irrevocable 2503(c) minor's trust, where they, as the trustees, have investment and distribution control over the assets for the minor's benefit. [...]this trust will not qualify for the annual generation-skipping transfer (GST) tax exclusion if it has multiple beneficiaries or if the trust assets would not be includible in a beneficiary's estate.
ISSN:0746-1062