25. LO.1 Barry creates a trust with property valued at $7,000,000. Under the terms of the trust instrument, Michelle (age 48) receives a life estate, while Jiaxu (age 24) receives the remainder interest. In the month the trust is created, the appropriate interest rate is 4.4%. Determine the value of Barrys gifts.

36. LO.7 At the time of her death, Ariana held the following assets:

	Fair Market Value
Personal residence (title listed as Ariana and Peter, tenants by the
entirety with right of survivorship)	$900,000
Savings account (listed as Ariana and Rex, joint tenants with right
of survivorship) with funds provided by Rex	40,000
Certificate of deposit (listed as Ariana, payable on proof of death
to Rex) with funds provided by Ariana	100,000
Unimproved real estate (title listed as Ariana and Rex, equal
tenants in common)	500,000
Insurance policy on Arianas life, issued by Lavender Company
(Arianas estate is the designated beneficiary)	300,000
Insurance policy on Arianas life, issued by Crimson Company
(Rex is the designated beneficiary, but Ariana can change
beneficiaries)	400,000

Assuming that Peter and Rex survive Ariana, how much is included in Arianas probate estate? Arianas gross estate? (Refer to text Section 18-3a as needed.)

23. LO.5 Christian wants to transfer as much as possible to his four adult married children (including spouses) and eight minor grandchildren without using any unified transfer tax credit.

1. What amount should Christian transfer to accomplish his tax goal?
2. What if Christians spouse, Mia, joins in the gifts?

11. LO.3, 5 Comment on the following items relative to tax planning strategies of a fiduciary entity.

1. To reduce taxes for a typical family, should income be shifted to a trust or from a trust? Why?
2. From a tax planning standpoint, who should invest in tax-exempt bonds, the trust or its beneficiaries?
3. To reduce overall taxes, should a high-income, wealthy beneficiary be assigned to the first or second tier of trust distributions? Why?