In 2014 and with $200,000, Alice purchases a CD at State Bank listing title as follows: Alice,

Question:

In 2014 and with $200,000, Alice purchases a CD at State Bank listing title as follows: “Alice, payable on proof of death to Clark.” Alice dies in 2021, and Clark (Alice’s nephew) redeems the CD (now worth $205,000). Disregarding the annual exclusion, what is Alice’s gift to Clark in:

a. 2014?

b. 2021?

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