Sandra,who Is Married,creates an Irrevocable Trust in the Amount of $200,000

question 67

Multiple Choice

Sandra,who is married,creates an irrevocable trust in the amount of $200,000 for her 18-year-old daughter,Kelly.She names the bank as trustee.Before Kelly reaches age 21,the trustee may pay the income to Kelly.Kelly will receive any undistributed assets when she reaches age 21.If Kelly dies before age 21,the assets will be paid to her estate.In addition,Sandra creates an irrevocable trust for her son,Kevin,age 21.He is entitled to withdraw up to $28,000 per year.Sandra contributes $28,000 in the current year.Sandra elects gift splitting with her husband.Her husband makes no gifts in the current year.Sandra's annual exclusions to be claimed on her gift tax return total

• A)$28,000.
• B)$15,500.
• C)$12,000.
• D)$0.

---

Definitions:

Boil

The process of heating a liquid to the temperature at which it turns to vapor.

Ideal Refrigerant

is a theoretical concept for a substance used in refrigeration that has optimal thermodynamic and physical properties, such as being non-toxic, environmentally friendly, and highly efficient in heat absorption and release.

Non-Combustible

Materials or substances that are incapable of igniting and burning, used in various safety applications to prevent fire.

Boil Temperatures

The temperature at which a liquid turns into vapor, which varies depending on the atmospheric pressure and the liquid's properties.