In 2019, Barry creates an irrevocable trust for the benefit of his children and grandchildren with $400,000 of assets. Barry allocates $400,000 of his GST Exemption to this trust when filing Form 709. If the trust appreciates to $1,000,000 in 2022, and a distribution of trust income is made to one grandchild, what are the GST implications of this situation?

n 2021 Betty loaned her son, Juan, $10,000 to help him buy a car. In 2023, before he repaid the $10,000, Betty to Juan that she was "tearing up" the $10,000 note as a graduation present. How should Juan treat the amount forgi O A. taxable income in year of forgiveness B. excludible gift in year of forgiveness OC. taxable income in year of loan O D. excludible gift in year of loan

Diego is a single individual who owns a life insurance policy worth $1.54 million that will be worth $8 million upon his death. This year Diego transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to Diego's two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Diego has made only one prior taxable gift of $12 million in January of 2018. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required: a. Calculate the amount of gift tax due (if any) on the transfer of the insurance policy. b. Diego died unexpectedly this year after transferring the policy. At the time of death, Diego's probate estate was $25 million, to be divided in equal shares between Diego's two children. Calculate the amount of cumulative taxable transfers for estate tax purposes. Note: For all requirements, enter your answers in dollars and not in millions of dollars. a. Amount of gift tax b. Amount of cumulative taxable…

22. Troy and Anne have the following in their combined estate. Assume that in 2008, Troy to set up the standard A/B marital deduction/bypass trust arrangement for himself. If Troy dies in 2021, which of the following would be correct (Assume No Deductible Expenses or Prior Gifts)? Troy separate property Anne separate property Community property $16,900,000 $700,000 $1,600,000 A Trust Receives B Trust Receives $ 6,000,000 $11,700,000 $ - 0- $13,074,200 А. В. $11,700,000 $ 6,000,000 $17,700,000 $4,625,800 C. D. In 2021, Richard gave gifts of $30,000 each to his church, his wife, his son, and his mother. Richard also created and funded a QTIP trust for his wife with $200,000 in which his daughter was to receive the remainder interest upon the death of the wife. A QTIP election will be made on Richard's gift tax return. What is the total value of the annual exclusions used by Richard? 23. А. $30,000 $45,000 $60,000 $90,000 None of the above. В. C. D. Е. 24. All the following items will be…