1. M Grantor transferred $1,000,000 to a trust in January 2019. Grantor had previously made more than $11,400,000 in taxable gifts. The Trustee (First Rational Bank) has the right, in its discretion, to distribute income to any of the children as the beneficiaries of the trust. There are 10 children.

a. How much of this transfer is a taxable gift?

b. How much is subject to gift tax?

c. What are the governing Code and Regulation Sections?

2. Grantor transferred $1,000,000 to a trust in January 2019. Grantor had previously made more than $11,400,000 in taxable gifts. The Trustee (First Rational Bank) has the right, in its discretion, to distribute income to any of the children as the beneficiaries of the trust. There are 10 children. The trustees distribute $20,000 each of their income to each of 5 beneficiaries in 2019.

a. How much of this transfer is a taxable gift?

b. How much is taxable?

c. What are the governing Code and Regulation Sections?

3. When Jim and Nina became engaged in April 2019, Jim gave Nina a ring that had a fair market value of $50,000. After their wedding in July 2019, Jim gave Nina $75,000 in cash so that Nina could have her own bank account. Both Jim and Nina are U.S. citizens. What was the amount of Jim's 2019 marital deduction?

4. In 2019, Roger, who is single, gave an outright gift of $16,000 to a friend, Matt, who needed the money to pay tuition at an accredited university. In filing his 2019 gift tax return, Roger was entitled to a maximum exclusion of

5. In 2019, Sayers, who is single, gave an outright gift of $50,000 to a friend, Johnson, who needed the money to pay medical expenses.

6. During the current year, Mann, an unmarried U.S. citizen, made a $5,000 cash gift to an only child and also paid $25,000 in tuition expenses directly to a grandchild's university on the grandchild's behalf. Mann made no other lifetime transfers. Assume that the gift tax annual exclusion is $15,000. For gift tax purposes, what was Mann's taxable gift?

7. Steve and Kay Briar, U.S. citizens, were married for the entire 2019 calendar year. In 2019, Steve gave a $32,000 cash gift to his sister. The Briars made no other gifts in 2019. They each signed a timely election to treat the $32,000 gift as made one-half by each spouse. Disregarding the applicable credit and estate tax consequences, what amount of the 2019 gift is taxable to the Briars?

8. The value of a life insurance policy owned by a decedent on the life of someone other than the decedent has to be included in the decedent's gross estate.

True or False

9. If a decedent possessed a power to appoint property to his adult children, the value of property subject to the power has to be included in the decedent's gross estate. True or False

10. John Aalto died on April 2, 2011. The amount of his gross estate was $3,000,000, the amount of his estate's allowable deductions was $750,000, and the amount of his adjusted taxable gifts was $300,000. What is the amount of his estate's tentative tax?

11. Provide 2 benefits for keeping property out of probate.

12. What is unified credit and what is the 2020 maximum unified credit.

13. The Alto Family Trust has the following income and expenses:

Interest income $8,000

Tax-exempt income $6,000

Capital gain income is $4,000.

Fiduciaries fee $2,000

The trust agreement allocates fiduciaries fees to trust income. Capital gains are allocated to trust corpus. Accounting income is distributed to Sue, the sole beneficiary, at the end of the year. What is taxable income?