Which of the statements is false for dan

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Problem 1: This year Dan transferred property worth $34,000 to a trust with the income to be paid to his 25-year old niece, Lissie. After the niece reaches age 32, the remainder interest is to be distributed to Dan's brother, Adam. The income interest is valued at $16,000 and the remainder interest is valued at $18,000. Assume that the annual gift exclusion for the current year is $15,000 and that Dan has not made any previous gifts during his lifetime. Which of the following statements is false?

Option 1: The gift to Adam, net of the annual exclusion, is $3,000.
Option 2: The gift to Lissie, net of the annual exclusion, is $1,000.
Option 3: The gift to Adam is $18,000.
Option 4: Dan can use part of the unified credit to offset the gift tax liability from these gifts.

Reference no: EM132950783

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