This allows you to make many small gifts without recording or reporting them. If the donor is married, his spouse may sign the donor's gift tax return as an indication that each spouse donated half the gift, even if the gift was actually donated by one spouse. A gift is considered present interest when the person receiving the donation has immediate, unfettered, and ascertainable possession, use, or enjoyment of the gift when it is made. A future interest gift is one in which the possession or use or enjoyment of the gift is deferred - even for a moment. Future interests include reversions and remainders.
Single transfers are sometimes two gifts that have to be separated for tax purposes.
One gift may be a present interest that qualifies for the annual exclusion, while the other gift may be a future interest that does not qualify for the annual exclusion. His son receives income annually from the trust for 10 years and his daughter is paid the remainder at the end of the 10 years. This illustration shows the incredible estate tax saving power of small gifts made to a number of donees over a long period of time in a systematic manner.