What is a gifting trust? by Janell Sprinkle

A gifting trust is an estate planning tool that allows you to take advantage of the Federal gift tax exemption ($19,000 for 2025) to transfer wealth to your loved ones, while also allowing you to retain control of how and when the gifted funds are used.

The gifting trust is established during your lifetime to hold gifted amounts for your loved ones. Distributions are specifically tailored based on the amounts and times you set. The trust can hold funds until a child reaches an age of maturity or disburse based on life events such as graduating college or purchasing a first home. Alternatively, it can distribute a percentage or dollar amount in installments or hold back all of the funds for emergency purposes only. In this way, a gifting trust creates a vehicle to provide income and support for your loved one so that gifts are not squandered or misused.

For more information, or to see if a gifting trust is right for you, contact your trust and estate attorney.