Spray provision is included in the trust instrument

Assignment Help Financial Management

Reference no: EM131310183

A grantor transfers $1 million to an irrevocable trust naming his three children as beneficiaries. A bank is the trustee and a spray provision is included in the trust instrument. What are the consequences of this transfer?

a. The grantor can take an annual exclusion for each trust beneficiary to reduce the taxable portion of the gift to $958,000

b. If the bank distributes $20,000 to one trust beneficiary this year, the grantor can take an annual exclusion of $14,000

c. The bank can make discretionary distributions of both income and corpus to the trust beneficiaries

d. The bank can only make discretionary distributions of income to the trust beneficiaries

Reference no: EM131310183

Questions Cloud

How often age discrimination claims are filed : Find and analyze any statistics on how often age discrimination claims are filed. In addition, should the laws be changed to cover age discrimination against people younger than 40 years of age

Describe a reference validation mechanism. : Use the Common Criteria to write security requirements for identifying the security functional and assurance requirements that define a security policy that implements the Bell-LaPadula Model.

What kinds of options is bruce proposing : What kinds of options is Bruce proposing? How much would the options be worth? Would the equity-linked and bear-market deposits generate positive NPV for Gibb River Bank?

How was the team brought back together : Briefly describe a time when you were part of a dysfunctional team. Why was it dysfunctional? Give specific examples. How was the team brought back together

Spray provision is included in the trust instrument : A grantor transfers $1 million to an irrevocable trust naming his three children as beneficiaries. A bank is the trustee and a spray provision is included in the trust instrument. What are the consequences of this transfer?

Discuss about the kirkpatricks taxonomy model : Discuss about the Kirkpatricks Taxonomy Model.Read the article "Apple is Beta-testing an Update that Kills Evasion Jailbreak." In the textbook, beta-testing is described as used for formative evaluation and for fine-tuning. How does the story of A..

Briefly describe three different team activities : Briefly describe three different team activities that you have experienced or observed on a team that increased team effectiveness. Explain the impact of these activities on the team

Benefits of methodology for handling criteria creep : This issue is not confined to the TCSEC, but rather is a problem universal to all evaluation technologies. Discuss the benefits and drawbacks of the CC methodology for handling criteria creep.

What is ibm preferred stocks beta with respect to market : Suppose that you own IBM preferred stock that pays an annual, fixed, and perpetual dividend of $10 which is worth $100 per share. The market return is 12% and the risk-free rate is 4%. What is IBM preferred stock's beta with respect to the market?

User Account

All Pages