Grantor G created an irrevocable trust funded w/$500K. G is 70, A is 50 and C is 30, IRC

7520 rate is 4%. A & C are not related to G.

Answer both questions for each scenario (a-d) listed below:

1. Was there a taxable gift and, if yes, what is the amount of the taxable gift?

2. When G dies is anything included in his estate, if so, why?

a. G retained life estate, remainder to A.

b. G retained income for 15 years, then to A. G dies 4 years later.

c. G retained income for 15 years, then to A. G dies 16 years later.

Problem 2:

When Adam was 60 years old, he established a QPRT for a term of 10 years with his

children as remaindermen. At the date of gift the value of the home was $1,500,000. The

IRC rate was 4%. What was the amount of taxable gift?

Problem 3:

John is charitably minded but he also wishes to help his nephew for the next 10 years while

he is finishing school and starts a family.