This Year Maria Transferred $600,000 to an Irrevocable Trust That

question 61

Essay

This year Maria transferred $600,000 to an irrevocable trust that pays equal shares of income annually to four cousins (or their estates)for the next eight years. At that time, the trust is terminated and the corpus of the trust reverts to Maria. Determine the amount, if any, of the current gifts and the taxable gifts if the relevant interest rate is 6 percent and Maria is married and elects to gift-split with her spouse?

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Definitions:

GEO

An acronym for Geosynchronous Earth Orbit, a type of orbit 35,786 kilometers above Earth's equator following the direction of Earth's rotation, used by satellites for communication and broadcasting.

LEO

Stands for Low Earth Orbit, referring to satellites that orbit the Earth at altitudes between about 160 and 2,000 kilometers.

MEO

Stands for Medium Earth Orbit, referring to a satellite system placed at an altitude between low earth and geostationary orbits, often used for communication and navigation.

Global Coverage

The extent to which a service, such as telecommunications, is available worldwide or across a wide area.