Because the monthly straight amount is so low, John would like to know the tax consequences and filing requirements if he gifts this to his granddaughter Sara. Assume that Mary will elect to gift spilt. John and Mary want you to explain any generation skipping tax liability or tax consequences to this gift to Sara. For generation skipping transfer tax purposes, what is the taxable amount of the gift? Assume,John receives a straight life annuity for $350 a month for 300 payments..

Total FMV at Time of Gift = ?

Less: Gift Tax Exclusion - John = ?

Less: Gift Tax Exclusion - Mary = ?

Net Taxable gift = ?