Caleb Transferred $115,000 to an Irrevocable Trust for Avery

question 82

Essay

Caleb transferred $115,000 to an irrevocable trust for Avery. The trustee has the discretion to distribute income or corpus for Avery's benefit but is required to distribute all assets to Avery (or his estate) not later than Avery's 21st birthday. What is the amount, if any, of the taxable gift?

---

Definitions:

Federal Prisons

Incarceration facilities operated by the Federal Bureau of Prisons, a division of the United States Department of Justice, designed to house individuals convicted of federal crimes.

American Civil Liberties

Rights and freedoms that are guaranteed by the Bill of Rights and the U.S. Constitution, which the American Civil Liberties Union aims to protect.

Civil Liberties

Individual rights protected by law from unjust governmental or other interference.

Great Depression

A severe worldwide economic depression that took place during the 1930s, notable for its duration, widespread poverty, and impact on global economies.