What does Gift in Trust mean? Read on to discover the definition & meaning of the term Gift in Trust - to help you better understand the language used in insurance policies.
Gift in Trust
A gift in trust is a gift that is given to a beneficiary but whose ownership is given to a trust. Granting ownership to the trust is a way to avoid paying the gift tax, which would otherwise have to be paid by the gift-giver if they made gifts in excess of $13,000 in a single year.
We hope the you have a better understanding of the meaning of Gift in Trust.