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Hank is a single individual who possesses a life insurance policy worth $300,000 that will pay his two children a total of $800,000 upon his

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Hank is a single individual who possesses a life insurance policy worth $300,000 that will pay his two children a total of $800,000 upon his death. This year Hank transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to his two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Hank has made only one prior taxable gift of $5 million in 2011. (Refer to Exhibit 14.1 and Exhibit 14-2) Required: a. Calculate the amount of gift tax due (if any) on the gift. b. Calculate the amount of cumulative taxable transfers for estate tax purposes if Hank dies this year but after the date of the gift. At the time of his death, Hank's probate estate is $10 million divided in equal shares between his two children. (For all requirements, enter your answers in dollars and not in millions of dollars.) a. b. Amount of gift tax Amount of cumulative taxable transfers for estate tax purposes Hank is a single individual who possesses a life insurance policy worth $300,000 that will pay his two children a total of $800,000 upon his death. This year Hank transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to his two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Hank has made only one prior taxable gift of $5 million in 2011. (Refer to Exhibit 14.1 and Exhibit 14-2) Required: a. Calculate the amount of gift tax due (if any) on the gift. b. Calculate the amount of cumulative taxable transfers for estate tax purposes if Hank dies this year but after the date of the gift. At the time of his death, Hank's probate estate is $10 million divided in equal shares between his two children. (For all requirements, enter your answers in dollars and not in millions of dollars.) a. b. Amount of gift tax Amount of cumulative taxable transfers for estate tax purposes

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