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?Fred creates an irrevocable trust with $ 1 , 6 7 5 , 0 0 0 ?in cash, income payable to Terri ( age 1

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?Fred creates an irrevocable trust with $1,675,000 ?in cash, income payable to Terri (age 15) ?for 10 ?years, remainder to Madison (age 55). ?The appropriate IRS valuation table factor for a term certain reflects a remainder is 0.68481(for 10 ?years) ?and 0.258336(for 55 ?years).
If required, round your answer to the nearest dollar.
Question Content Area
a. ? How much is Fred's gift to Terri?
b. ? Does the gift qualify for the annual exclusion?
If the trust income
can or cannot
?be accumulated but
must or must not
?be distributed currently, the annual exclusion is available.
Question Content Area
c. ? If Madison is Fred's wife, does the gift to her generate a marital deduction?
Yes or No Fred creates an irrevocable trust with $1,675,000 ?in cash, income payable to Terri (age 15) ?for 10 ?years, remainder to Madison (age 55).
The appropriate IRS valuation table factor for a term certain reflects a remainder is 0.68481(for 10 ?years) ?and 0.258336(for 55 ?years).
If required, round your answer to the nearest dollar.
a. ?How much is Fred's gift to Terri?
$
b. ?Does the gift qualify for the annual exclusion?
If the trust income
be accumulated but
be distributed currently, the annual exclusion is available.
c. ?If Madison is Fred's wife, does the gift to her generate a marital deduction?
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