Example - Spouses assets are held in their revocable Trust. Surviving spouse dies, distributions are made as cash to beneficiaries listed in the Trust.
Do I understand this correctly?
1. Gift Tax Return is NOT required if distributed directly to the beneficiaries in cash.
2. Gift Tax Return IS required if the cash is deposited into an account within a beneficiaries revocable trust.
"The IRS does not levy gift taxes on trusts, nor does it consider payments from the trust to a beneficiary as a gift. However, if you make a gift "in trust," meaning if you donate money to a trust for someone's immediate benefit, then the gift is subject to gift tax and the exclusion amount."
https://finance.zacks.com/trust-federal-gift-tax-exemption-11312.html
