Assuming that Woody appoints

an independent trustee

$,$ the trust is tax$-$effective to a limited extent. Generally, since Wendy is subject to a

lower

marginal income tax rate than is Woody, the family's Federal income tax liability is

reduced

with respect to all of the investment and capital gain income generated by that portion of his investment portfolio that he transfers to the trust. However, due to his daughter's current age, Woody needs to be concerned about the potential impact of the

kiddie

tax. The Kiddie Tax applies to a child if: the child is under age $19$ at year end or is a full$-$time student age $19$ to $23$; the child's

unearned

income exceeds $fill in the blank $6$

$2,500$

; and the child does not file a joint return. For a child age $18,$ or age $19$ to $23$ and a full$-$time student, the Kiddie Tax rules apply only if the child's earned income does not exceed one$-$half of the child's support $[1($g$)(2)].$ A plan where the trustee would invest in

growth assets

$,$ rather than

income$-$producing assets

$,$ would help ensure the effectiveness of Woody's income$-$shifting plans.