Legal Question in Wills and Trusts in Illinois

The money that goes into the fund is not likely to be income. The interest earned on that money is income. So, if you give a child $50,000 it is not income. It is a gift. That $50,000 will probably go into go into the bank or an investment account. The money may earn interest. That interest will be income and probably be taxable. Check with your tax advisor.

That depends. For federal tax reporting purposes, you need to know if the Trust uses the child's social security number as a tax ID. For reporting to a Guardianship Court, you need to know whether that Trust is considered to be a part of his Guardianship Estate. You also need to ask a few more questions before you can definitively answer your question for the Court or Uncle Sam. Feel free to give me a call to discuss this. I never charge for introductory phone calls.