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Problem - Dale (age 68) creates a trust with assets worth $5 million. Under the terms of the trust, Dale retains a life estate with the remainder passing to Nicole (age 34) upon his death. In the month the trust is created, the interest rate is 4.8%.
Required -
a. Determine the amount of Dale's gift. Of his taxable gift.
b. Does the answer in part (a) change if Nicole is Dale's wife? (Refer to text Section 18-3b, if necessary.)
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