A future interest gift is a transfer in which the recipient's enjoyment is delayed-such as a remainder interest in a trust-so the donee cannot immediately possess or use the property. Future interests generally do not qualify for the annual gift-tax exclusion, unlike present-interest gifts. In planning, future interests are used to control timing, protect assets, and coordinate multi-generational transfers. Proper documentation and disclosure on gift-tax returns support the valuation and tax treatment of the transfer and any allocation of generation-skipping transfer tax exemption.

Advisors use future-interest gifts in trusts to control timing and protection for heirs. They file 709s, allocate GST exemption where appropriate, and coordinate valuations. Explaining why annual exclusion may not apply sets correct expectations for donors.