35. D transferred $50,000 to an irrevocable trust each year from trust creation (Year 1) throughout the trust ' s existence in Year 12.The trust used the $50,000 to pay for an insurance premium on D's life.The insurance policy had no value for the first 10 years of the trust (only a death benefit), but after Year 10 (beginning in Year 11), the policy had a $150,000 fair market value which increased by $50,000 each year.Le was $200,000 in Year 12.The trust was the beneficiary of the policy.D's three children were the beneficiaries of the trust.They were each given the right to withdraw $10,000 each year and provided with proper notice of such right (although never exercised). D died in Year 13 and the policy turned to cash of $2,000,000which was distributed evenly among the three children.

a. What, if anything, is included in D's Gross Estate?

b. Have the three children made any gifts? If so how much?

c. What, if anything, is D's annual exclusion amount in Year 5