For many years, the problem of a gift of assets or interests in businesses being deemed to be a gift of a future interest has haunted estate planners. Gifts considered to be future interests are not eligible for the federal gift tax annual exclusion and, therefore, reduce the applicable credit amount ($1,000,000 in 2002). A late March, 2002, Tax Court case has focused attention once again on the risks of gifts of business interests being held to be gifts of future interests.
Harl, Neil E. and McEowen, Roger A.
"Gifts of Future Interests,"
Agricultural Law Digest: Vol. 13
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol13/iss13/1