Ryan Placed $280,000 in Trust with Income to Stephen for His

question 134

Essay

Ryan placed $280,000 in trust with income to Stephen for his life and the remainder to Kayla (or her estate). At the time of the gift, given the prevailing interest rate, Stephen's life estate was valued at $165,000 and the remainder at $115,000. What is the amount, if any, of Ryan's taxable gifts?

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Definitions:

National Labor Relations Act

A foundational statute in United States labor law which protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices, which can harm the general welfare of workers, businesses, and the U.S. economy.

Agricultural Laborers

Workers involved in the cultivation, harvesting, and processing of crops and livestock, often facing unique labor and employment conditions.

Domestic Service

Employment within a household, typically performing tasks related to cleaning, cooking, and home maintenance.

Fair Labor Standards Act

A United States law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work more than forty hours a week. It also prohibits most employment of minors in "oppressive child labor."