For many years, the problem of a gift of assets or interests in businesses being deemed to be a gift of a future interest has haunted estate planners. Gifts considered to be future interests are not eligible for the federal gift tax annual exclusion and, therefore, reduce the applicable credit amount ($1,000,000 in 2002). A late March, 2002, Tax Court case has focused attention once again on the risks of gifts of business interests being held to be gifts of future interests.