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Potential client set up an ILIT in 2004; bene's are 2 adult children and 5 grandchildren equally.
Trust has Crummey provisions and "hanging powers" for the 5-and-5 limits.
Gifts in 2004 were $5,102 per bene, which was determined to be 5% of the value of the trust corpus (ie, the greater of the 5-and- 5 limit. Crummey letters were timely issued.Question: Does grantor need to file a 709 to make an allocation of GST exemption, even though the gifts were under the annual exclusion amount? Is it too late to make an allocation of the GST exemption other than the automatic allocation? Would it be advisable to elect out of the automatic allocation (if allowable at this late date)? Do the gifts even qualify as gifts of "present interest" for GST purposes??
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