This Year Nathan Transferred $7 Million to an Irrevocable Trust

question 145

Multiple Choice

This year Nathan transferred $7 million to an irrevocable trust established for the benefit of his nephew. The trustee is directed to accumulate income for the next five years before distributing the trust corpus to Nathan's nephew. In past years Nathan has made taxable gifts of $6 million and used an applicable credit on an exemption equivalent of $5 million. What amount of gift tax, if any, must Nathan remit?

• A)$168,000.
• B)$240,000.
• C)$345,800.
• D)zero-there is a $11.58 million exemption equivalent.
• E)None of the choices are correct. The amount of tax cannot be estimated without the use of a tax rate schedule.

Grasp the evolutionary basis of human behaviors and physiological traits.

Recognize the contributions of mutations and natural selection to species evolution.

Appreciate the role of evolutionary psychology in explaining human behavior and traits.

Understand the concept of epigenetics and its implications for gene expression without altering DNA.

---

Definitions:

Privilege

denotes a set of unearned advantages, rights, or immunities that a person or group is granted based on certain societal norms, often at the expense of others.

Mutual Understanding

A shared sense of meaning or agreement between parties or individuals.

Commitment

The act of dedicating oneself to a course of action or cause.

Collaboration

A process where two or more people or groups work together to achieve shared goals.