Do I have to file Gift Tax returns for the gifts to my Insurance Trust?
Filing a gift tax return for an Irrevocable Life Insurance Trust (ILIT), even if not technically required because all gifts are below the annual exclusion, is a good idea. Benefits: Filing starts the statute of limitations running on the IRS to audit the gift. Filing allows you to decide affirmatively whether Generation Skipping Transfer Tax (GST) exemption is allocated. Allocation of GST to an ILIT The GST Annual Exclusion does not apply to a gift…