I know one can refuse an inheritance, but can one refuse income from a trust fund without gift tax consequences?
For 28 years, I have been receiving quarterly checks from a trust fund set up by my grandfather. I will never receive any corpus of the trust. I'm 72 years old with no debts. With my Social Security, pension, and IRA, I have enough money to live for the rest of my life.
Realizing that this is not reversible under any circumstances, can I write a letter to the trustee(s) asking them to treat the trust fund as if I were dead? As the income stream has value, would this be considered a gift for gift-tax purposes?
I live in Massachusetts, if that matters, but I'm primarily interest in U.S. code.
- posted 6 years ago