- Jurisdiction
- California
Greetings. Within a bypass trust established when one spouse was deceased if a distribution is made to the final trust beneficiaries (2 kids in this case) while the spouse is still alive is this considered a reportable gift ?
I know that any distribution from the spouses trust assets over $15k would be a reportable gift. It's only on the bypass trust I'm trying to get confirmed. I know once the surviving spouse passed the Bypass trust assets are inherited witb no estate taxes (and not a gift) but was t sure if there is different treatment if spouse is still alive.
Thank you in advance
I know that any distribution from the spouses trust assets over $15k would be a reportable gift. It's only on the bypass trust I'm trying to get confirmed. I know once the surviving spouse passed the Bypass trust assets are inherited witb no estate taxes (and not a gift) but was t sure if there is different treatment if spouse is still alive.
Thank you in advance