Are there any gift tax implications for creating,funding and/or withdrawing funds from an "In Trust For" (ITF) bank account .
Are there special rules for an account in New York State ?

To be truthful, I do not know. I suspect ebaines or IntlTax MAY know, but I am not sure.

This is an exceptionally complex tax question, one that, to be quite frank, should NOT be posted to a forum such as this, but rather posed to a qualified tax professional who has your total financial picture available to him/her.

This type of transaction is sometimes referred to as a “Totten” trust. Because the transfer into the account is revocable, the transfer is not a completed gift. Only when amounts are distributed from the account to the donee is there a completed gift.

This type of account is effective in moving assets from probate.