Question $25$

Which of the following situations describes a taxable distribution for GST tax purposes?

Frank transfers $$5,000,000$ to an irrevocable trust. The terms of the trust require the income to be distributed annually to his great$-$niece for the next $15$ years. Thereafter, the trust is to be terminated and all trust properly is to be distributed to Frank's son.

Mildred gives granddaughter real estate worth $$5,000,000.$

Andy transfers $$5,000,000$ to an irrevocable trust. The terms of the trust require the income to be distributed to his daughter for the next $15$ years. Thereafter, the trust is to be terminated and all trust properly is to be distributed to Andy's granddaughter.

None of the situations describes a taxable distribution.