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:

Urge to Void

The feeling of needing to urinate.

In-dwelling Catheter

A catheter that remains inserted in the urinary bladder for continuous urine drainage over a period of time.

Drainage Bag

A medical device used to collect fluids that drain from a patient's body, commonly used after surgery.

Ambulating

The act of walking or moving from one place to another, often used in healthcare to refer to patients' mobility status.