@Romper wrote:
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.
1) That is correct; a distribution from a trust to a beneficiary is not technically considered to be a gift for which a gift tax return (Form 709) would be required.
2) A gift to a trust (revocable or irrevocable) is considered to be a gift to each of the beneficiaries. If the amount exceeds the annual exclusion, a gift tax return would be required.
