Estate Finance Family Tax Plan Question

2. On January 2, 1990, Hank Brady establishes the Judge Hank Brady Irrevocable Dynasty Trust with Tenleytown Trust Company as trustee. On January 10, 1990, Hank transfers 100 shares of Brady, Inc. stock to the trust worth $1 million. Hank Brady does not allocate any GST exemption to the trust either during the transfer or at any point after, and, therefore, the trust has an inclusion ratio of 1. The trustee has the discretion to distribute principal to the grantor's son, Mike, and Mike's sons, Greg, Peter and Bobby to provide for their welfare. Upon Mike's death, the remainder is distributed in equal shares to Mike's sons. On January 10, 2018, $100,000 is distributed to Mike, $100,000 is distributed to Greg and $100,000 is distributed to Peter. The trust also lends Bobby $100,000. Under the terms of the loan, Bobby pays interest of 4% a year for three years at the end of which time he must repay the principal. How much GST tax does the trust and its beneficiaries owe in 2018? Analyze the extent to which each transaction causes GST tax and why. Identify who is responsible for paying the tax.