Transfers to trusts may be subject to estate and gift taxes Transfers to a trust may be recognized as completed gifts for federal gift tax purposes. Further, whether or not the gift tax applies, if the transferor retains until death the use of, enjoyment of, or income from the property placed in a trust, the property will be subject to federal estate tax when the transferor dies. (IRC § 2036(a)). Related topic Abusive trust tax evasion schemes
