In 2020, Lilly Makes Taxable Gifts Aggregating $12 Million After

question 14

Essay

In 2020, Lilly makes taxable gifts aggregating $12 million after annual exclusion reduction. Her only other taxable gifts amount to $1 million (after annual exclusion amounts), all of which were made in 2018. What is her gift tax liability?

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Definitions:

Mesonephros

An embryonic kidney that serves as an interim kidney while the final kidney (metanephros) is forming in vertebrates.

Neural Tube

Tube formed from the neuroectoderm by the closure of the neural groove; develops into the spinal cord and brain.

Neural Plate

Region of the dorsal surface of the embryo that is transformed into the neural tube and neural crest.

Primitive Streak

An early structure that forms in the developing embryo, crucial for the process of gastrulation and establishing the body plan of the organism.