Big Mike, a very generous man, has given his granddaughter, Jordan, a gift equal to $5.45 million last year and paid any relevant taxes. He now wants to give his grandson, Colin, a gift of $5.45 million plus the annual exclusion of $14,000 on his birthday and wants to know what his total outflow will be for the gifts and any other related taxes. The amount of his cash flows related to the gift to Colin is?

a. $5,464,000.

b. $7,644,000.

c. $9,824,800.

d. $10,641,800.

I.M. Rich, age 65, gave $30,000 each to his son, his daughter, his six-year-old niece, his 21- year-old female neighbor, and his wife. Which of the transfers would be subject to GSTT?

The transfer to his neighbor.

The transfer to his wife.

The transfer to his niece and neighbor.

None

Jack and his wife, Carol, were in an auto accident. Carol died three weeks before Jack did. His gross estate was $6.2 million. One of the major assets in his estate was closely held stock in an equipment leasing firm (C corporation) with which rapidly appreciating equipment was purchased. His estate had unsecured debts of $400,000 and administrative expenses of $75,000. His will allocates his estate to his children in equal shares. Which post mortem planning techniques might benefit Jack's estate?

The alternative valuation date.

A Section 303 stock redemption.

The QTIP election.

Special use valuation.

Installment payment of estate taxes.

a.

3 only.

b.

2 and 5.

c.

4 and 5.

d.

1, 3 and 4.

Who is liable for the GSTT on a taxable termination?

		The contingent beneficiary of the terminating trust.
		The beneficiaries of the terminating trust.
		The trustee of the terminating trust.
		The executor of the terminating trust.