Do I have to file Gift Tax returns for the gifts to my Insurance Trust?

Filing a gift tax return for an ILIT, even if not technically required because all gifts are below the annual exclusion, is a good idea. It starts the statute of limitations for an audit of the gift. It allows you to decide affirmatively whether GST exemption is allocated. The GST Annual Exclusion does not apply to a gift in trust, unless very strict and unlikely criteria are met (only one beneficiary, must be includable in that beneficiary’s taxable estate). So to create a GST Exempt Trust, exemption must be allocated. If the ILIT qualifies for automatic allocation of GST exemption, then you are probably OK not filing, but I do not like to rely on automatic allocation.