This question is from my Wills Estates and Trusts class.

1. John sets up an irrevocable trust for his brother Joe and transfers $150,000 into the trust. Joe is to receive the income for the next five years, the remainder interest goes to his son Jay.

If the present value (PV) of the gift to Joe is $30,200, how much is the taxable gift? $_____________

If the remainder interest for Jay is valued at $119,800, can it be reduced any further? ____

What is the total gift tax value of the gifts he has made to Joe and Jay? $_______________