This Year Evelyn Created an Irrevocable Trust to Provide for Ed

question 30

Essay

This year Evelyn created an irrevocable trust to provide for Ed, her 32-year-old nephew, and Ed's family. Evelyn transferred $150,000 to the trust and named a bank as the trustee. The trust was directed to pay income to Ed until he reaches age 35 (three years from now), and at that time the trust is to be terminated and the corpus is to be distributed to Ed's two children (or their estates). Determine the amount, if any, of the taxable gift. The relevant interest rate is 6 percent.

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Definitions:

Health Care Provider's Order

Written, verbal, or electronic instructions by a qualified healthcare professional for the treatment or testing of a patient.

Combative Patient

A patient who is aggressively resistant or confrontational, posing challenges to healthcare providers or caregivers.

Civil Rights

The rights of citizens to political and social freedom and equality, often protected by the law.

Secluded

Being isolated or hidden away from the view and company of others, often implying a quiet or private space.