Christian Transferred $60,000 to an Irrevocable Trust for the Benefit

question 91

Multiple Choice

Christian transferred $60,000 to an irrevocable trust for the benefit of his three daughters. The three daughters share income equally for five years and then the corpus of the trust is to be divided equally between them. What is the amount of the taxable gifts, if any, made by Christian?

• A) $60,000.
• B) $46,000.
• C) $34,000.
• D) $18,000.
• E) None of the choices are correct - the amount of the taxable gifts cannot be ascertained without valuing each income interest.

---

Definitions:

Illusory Correlations

The belief in a connection between two factors when, in reality, no such connection is present.

Phonemes

The minimal sound component in a language that differentiates one word from another.

Morphemes

The smallest grammatical units in a language that carry meaning, such as prefixes, suffixes, and root words.

Algorithm

A step-by-step procedure or formula for solving a problem, typically used in computing and mathematical problem-solving.