Carol, an elderly, single woman, recently came to you, an estate planning professional, to discuss her estate plan. After a lengthy discussion you determine that Carol completed several transactions last year that may be subject to gift tax. The transactions you uncovered include:

$1.$

Carol had a bank account in the amount of $$15,000$ that was owned fee simple. She wanted to make sure her son, Peter, could access the money $$just in case$$ so she changed the ownership of the account to JTWROS in her and Peter$$s name equally. Peter has not made any withdrawals.

$2.$

Feeling guilty about retitling her checking account JTWROS with her son, Carol decided to change the titling of her vintage automobile as JTWROS with her daughter, Marsha. Carol purchased the property for $$15,000$ and the fair market value of the property on the date of retitling was $$40,000.$ Due to a high demand for this vintage model the value of the car today is $$50,000.$

$3.$

Carol received a beneficiary designation form in the mail for her $$1,000,000$ life insurance policy. The policy never had a beneficiary, so she designated her son, Peter and daughter, Marsha, as joint beneficiaries. Carol$$s basis in the policy is $$200,000.$

$4.$

Carol has two stock portfolio accounts with a local brokerage firm valued at $$200,000.$

Upon her advisor$$s suggestion, she retitled the account as a transfer on death account to $$save taxes.$$ Upon her death, the assets will transfer equally to her son, Peter, and her daughter, Marsha.

$5.$

Carol$$s daughter Marsha has always been a little poor with budgeting her money. So$,$ it was no surprise to Carol that Marsha could not afford her daughter Cindy$$s braces. Feeling sorry for Cindy, Carol gave Cindy $$50,000$ for the braces. Carol later found out that the braces only cost $$15,000$ and Cindy spent the remaining money on cosmetic surgery.

$6.$

Carol was beginning to become very concerned because her son, Peter, had never married.

She was so happy he finally got married, she gave Peter $$40,000$ so the couple could take a two$-$month trip to Australia.

When you inform her that you are concerned about some of these transactions and that she may need to file a gift tax return she states, $$you obviously must not be a very good planner because none of my other planners ever told me that, besides it would be ridiculous for me to pay tax on things I want to give to my family that I purchased with my hard$-$earned money that was already taxed.$$ After more discussion, Carol confesses to you that you are highly recommended and frankly, she has already used almost every planner in town and since they have all declined to represent her, she is confident that you will do the right things.

$4.$

Calculate Carol$$s taxable gifts for the current year.

a$.$

$$40,000.$

b$.$

$$50,000.$

c$.$

$$56,000.$

d$.$

$$110,000.$

$5.$

Calculate the value of Carol$$s total qualified transfers for the current year.

a$.$

$$0.$

b$.$

$$15,000.$

c$.$

$$35,000.$

d$.$

$$50,000.$