A gift to a minor is considered a present interest – which means that it will qualify for the $12,000 per person annual exclusion -- if all the following are met:
(1) Both the property and its income may be expended by the minor before age 21;
(2) All remaining property and its income passes to the person when he/she reaches 21;
(3) if the minor dies before 21, the property and its income will be paid either to the minor’s estate or to whomever the minor appoints under a general power of appointment.
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