Please calculate and provide answers for a, b, and c.

Eduardo established a $5 million GRIT (grantor retained interest trust). The terms of the trust gave Eduardo income for 10 years. If Eduardo died during the term of the trust, the corpus reverted to his revocable probate avoidance trust. When the trust was established, Eduardo was 65 and the federal interest rate for valuing transfers was 8%.

(a) If the contingent remainderman was Eduardo's nephew, Ricky, what is the value of the gift?

(b) If the contingent remainderman is Eduardo's son, Carlos, what is the value? Why the difference?

(c) If Eduardo died in year two when the trust was worth $5,500,000, how much would be included in his estate? Does your answer depend upon whether the remainderman was the nephew or the son? Explain.