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Irrevocable Minor Trust 2503(c) Under Internal Revenue Code Section 2503(c), a gift to a trust established for a minor qualifies for the gift tax annual exclusion if the child has the right to withdraw the money at age 21. However, a child can be granted the right to continue the trust term beyond age 21.

How to Set Up a Trust Fund for a Child Specify the purpose of the Trust. Clarify how the Trust will be funded. Decide who will manage the Trust. Legally create the Trust and Trust Documents. Transfer assets into and fund the Trust.

Incentive trusts are becoming a popular choice for parents of young children that want their children to achieve certain goals in life. Incentive trusts provide parents with the flexibility to set goals and appropriate rewards through distributions once a child reaches the goal.

The most common type of trust for children under 18 years of age is a custodial account. Custodial accounts are governed under the Uniform Gift to Minors Act (UMGA) or the Uniform Transfer to Minors Act (UTMA). UGMA lets minors own securities while UTMA lets minors own other kinds of property including real estate.

The IRS requires contractors to fill out a Form W-9, request for Taxpayer Identification Number and Certification, which you should keep on file for at least four years after the hiring. This form is used to request the correct name and Taxpayer Identification Number, or TIN, of the worker or their entity.

With this in mind, 1099 contractors need to make a minimum of 7.65% more per hour to cover the employer's share of Social Security and Medicare taxes.