Using Excel, prepare your answer. Figure Gingers s gift tax.

In March 2021, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described

below.

Determine Gingers gift tax liability for 2021 if she and Greg elect gift splitting and Greg gave their son

Stevie stock valued at $80,000 during 2021.

Gingers grandmother Mamie died on November 12, 2020, and Mamies will be bequeathed $250,000 to

Ginger.

On March 4, 2021, Ginger irrevocably disclaimed the $250,000 in writing, and, as a result, the property

passed instead to Gingers sister Gertie.

In 2021, Ginger gave $100,000 cash to her alma mater, State University.

In 1996, Ginger gave ownership of a life insurance policy on her own life to her daughter, Denise, and in

2021 Ginger paid the $22,000 annual premium on the policy.

In 2020, Ginger deposited $45,000 into a bank account in the name of herself and son Stevie, joint

tenants with rights of survivorship. Stevie deposited nothing. Neither party made a withdrawal until

2021, when Stevie withdrew $30,000.

In January 2021, Ginger created a trust with County Bank as trustee and transferred $300,000 of stock to

the irrevocable trust. She named her husband Greg (age 47) to receive all the trust income semi-

annually for life and daughter Drucilla to receive the remainder.

In 2021, she gave a remainder interest in her beach cottage to the American Red Cross and kept the

right to use the cottage rent free for the rest of her life. The fair market value of the cottage was

$70,000.

Other information: Gingers earlier taxable gifts are $175,000, all made in 1996. Ginger will make

whatever elections are necessary to minimize her current gift tax liability. Assume the Sec. 7520 interest

rate is 4%.