The year is 2023 and Donald, age 59, and Kathy, age 61, both Missouri residents, have been dating for about a year and a half. Donald and Kathy met while salmon fishing in British Columbia.

While they have no current plans to marry, they live together in Donalds house. This year Donald gave Kathy outright $8,000,000 from a money market account and transferred ownership of the house to her as a joint tenant with Donald (FMV $5,652,000 and basis of $2,830,000). Donald also purchased a $1,300,000 life insurance policy on his life and named Kathy as the beneficiary. Premiums are $7,000 per year.

Donald was previously married and has three children from that marriage, Sarah, age 34, Wesley, age 31, and Susan, age 28. Both girls are happily married and have children of their own. Sarah has two children, Emily, age 6, and Melissa, age 12. Susan has twins, Brett and Melanie, age 2. Wesley is single and has no children. Kathy has one daughter, Pam, age 35, who Kathy supports due to Pams mental illness.

Donald and his first wife, Julia, have been divorced for six years. Donald is required to pay Julia alimony in the amount of $7,500 per month, totaling $22,500 this year.

Donald also made the following transfers during the current year:

$40,000 cash to each grandchild in separate 2503(c) trusts

$115,000 directly to Wesleys medical school to pay his tuition

$67,000 to the hospital to help Susan pay for the twins most recent hospitalization

$50,000 to the Springfield Art Museum

An original Chihuly glass sculpture to Sarah. The FMV on the date of the gift was $53,000. Donalds basis was $6,000 and he purchased the sculpture three years ago. Donald paid $230 in gift tax for this gift.

$100,000 to an irrevocable special needs trust for Pam. The trustee has discretion to make distributions of principal and interest for Pams benefit, there are no mandatory distributions, and there are no Crummey provisions in the trust.

1. What is the amount of Donalds total taxable gifts for the year? (show your work in this chart, including totals for each column) 3 points

Donee	Gift	Minus Annual Exclusion	Minus Exempt or Deductible Transfer	Total Taxable Gifts
Kathy
Julia
Pam
Wesley
Susan
Melissa
Emily
Brett
Melanie
Sarah
Art Museum
Total