A gift that might otherwise be viewed as a future interest i

A gift that might otherwise be viewed as a future interest in a trust can be treated as present interest gift if:

1. The beneficiary has the right to contribute to the trust

2. The beneficiary has the right to withdraw a contribution (gift) to the trust

3 The beneficiary has the right to makie income distributions to the trust

4. The beneficiary has the right to makie corpus contributions to the trust

Solution

The Crummey powers give the beneficiary the right to withdraw contributions to a trust and therby a future interest in a trust can be treated as present interest gift Option 2 is correct