What is Fred gift to Terri

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Reference no: EM132650918

Problem - Fred creates an irrevocable trust with $1 million in cash, income payable to Terri (age 13) for 10 years, remainder to Madison (age 30). The appropriate IRS Table B for a term certain remainder factor is 0.613913 (for 10 years) and 0.231377 (for 30 years).

Required -

a. What is Fred's gift to Terri?

b. Does the gift qualify for the annual exclusion?

c. If Madison is Fred's wife, does the gift to her generate a marital deduction?

Reference no: EM132650918

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