Section 11.18 Federal Gift Taxes

• Library: Trusts and Powers 2013 Supp

A. (§11.18) Federal Gift Taxes

A gift to a custodian for a minor under the Missouri Transfers to Minors Law (MTML), §§ 404.005–404.094, RSMo 2000, will qualify as a gift of a present interest under the federal annual gift tax exclusion under I.R.C. § 2503(b) and (c) ($11,000 per year in 2005). Rev. Rul. 56-86, 1956-1 C.B. 449; Rev. Rul. 59-357, 1959-2 C.B. 212. A transfer to a custodian for a minor under state law is a transfer of a present interest in the property to the minor that is indefeasibly vested. Section 404.014, RSMo 2000. Both the income and principal of the...