SlideShare a Scribd company logo
Assignment: Assignment 2
Donald established an irrevocable trust on May 10, 2013. The
trust named his wife, Melinda, as trustee and named his
daughter, Daisy, as backup trustee.
The trust instrument contained the following key provisions:
This trust is irrevocable. To the extent allowed by law, the
assets in this trust shall not be subject to the beneficiaries’
liabilities or creditors and shall not be subject to assignment or
anticipation by any beneficiary.
During the lifetime of the grantor, the trustee may, in her sole
discretion, distribute assets to or for the benefit of the spouse
and/or children of the grantor to the extent that she deems
appropriate for their health, education, maintenance and
support. However, no distribution shall be made for the benefit
of Melinda under this Paragraph without the express consent of
at least one child or grandchild of the grantor.
During the first five years of the trust’s existence, the trustee
may, in her discretion, also use trust income (but not principal)
for the benefit of Donald, the grantor. After five years shall
have elapsed from the execution of this trust, this power shall
cease to exist and shall be null and void.
After the death of the last to die of the grantor and his wife, the
remaining trust assets, if any, shall be distributed to and among
the children of the grantor, in equal shares, per stirpes.
You may assume that the remaining provisions of the trust are
fairly standard boilerplate provisions and are not relevant to
this question.
On June 1, 2014, Donald transferred $2,000,000 to this trust.
Please answer the following questions regarding this trust:
1) 1. How much (if any) of the transfer is eligible for the
gift tax marital deduction? Explain.
2) 2. Are the trust assets part of Donald’s taxable estate?
What does this depend on? Explain.
3) 3. Why are gifts to this trust not eligible for the gift
tax annual exclusion? What could be done to change that?
Please describe.
4) 4. Are the trust assets part of Melinda’s taxable
estate? Explain.
5) 5. For income tax purposes, is this trust considered a
“grantor trust”? Explain.
In answering each question, please make sure to cite applicable
authority. For this assignment, that means citing appropriate
statutes in the Internal Revenue Code. The answer to each
question on this assignment appears in the Internal Revenue
Code itself. There is no need to cite regulations or case law. It
is expected that all of your answers will cite appropriate
sections of the Internal Revenue Code. Be sure to fully explain
your answers.
You do not need to use IRAC-style essays to answer these
questions.

More Related Content

Similar to Assignment Assignment 2 Donald established an irrevocable trust.docx

Protecting Inheritances
Protecting InheritancesProtecting Inheritances
Protecting Inheritances
wardwilsey
 
Asset Protection: Reducing Risk, Promoting Peace of Mind
Asset Protection: Reducing Risk, Promoting Peace of Mind Asset Protection: Reducing Risk, Promoting Peace of Mind
Asset Protection: Reducing Risk, Promoting Peace of Mind
HayesLaw
 
Accountable Advice_Mar-Arp-2015_1stNat
Accountable Advice_Mar-Arp-2015_1stNatAccountable Advice_Mar-Arp-2015_1stNat
Accountable Advice_Mar-Arp-2015_1stNat
Jude Sandvall, 720-255-1021
 
What is a Revocable Trust?
What is a Revocable Trust?What is a Revocable Trust?
What is a Revocable Trust?
efficientcybers21
 
Elmwood guide to the living trust
Elmwood guide to the living trustElmwood guide to the living trust
Elmwood guide to the living trust
Elmwood Wealth Management
 
Installment sale to an IDIT
Installment sale to an IDITInstallment sale to an IDIT
Installment sale to an IDIT
theBurgessGroup
 
Megan Brand and Susie Germany: Planning for the future needs of your loved on...
Megan Brand and Susie Germany: Planning for the future needs of your loved on...Megan Brand and Susie Germany: Planning for the future needs of your loved on...
Megan Brand and Susie Germany: Planning for the future needs of your loved on...
Ursula Webhofer
 
Common deductions taxpayers overlook
Common deductions taxpayers overlookCommon deductions taxpayers overlook
Common deductions taxpayers overlook
Finer Wealth Management, Inc.
 
Kfs ilit
Kfs ilitKfs ilit
Kfs ilit
roowah1
 
What Is a New York Special Needs Trust
What Is a New York Special Needs TrustWhat Is a New York Special Needs Trust
What Is a New York Special Needs Trust
Mark Eghrari
 
What is a Special Needs Trust in Connecticut?
What is a Special Needs Trust in Connecticut?What is a Special Needs Trust in Connecticut?
What is a Special Needs Trust in Connecticut?
Barry D Horowitz
 
Family Inheritance Protection
Family Inheritance ProtectionFamily Inheritance Protection
Family Inheritance Protection
Douglas Lineberry
 
Adoption Tax Credit: A Guide for Advocates
Adoption Tax Credit: A Guide for AdvocatesAdoption Tax Credit: A Guide for Advocates
Adoption Tax Credit: A Guide for Advocates
Madeline Daniels
 
3 8 2011 Estate Planning Power Point
3 8 2011 Estate Planning  Power Point3 8 2011 Estate Planning  Power Point
3 8 2011 Estate Planning Power Point
Provanedgefin
 
Henson trusts slideshare version
Henson trusts slideshare versionHenson trusts slideshare version
Henson trusts slideshare version
Community Legal Education Ontario (CLEO)
 
Basic ep
Basic epBasic ep
Basic ep
swkoppel
 
The Treatments of Trusts in Property Settlements
The Treatments of Trusts in Property SettlementsThe Treatments of Trusts in Property Settlements
The Treatments of Trusts in Property Settlements
Michael Lynch Family Lawyers
 
Beneficiary of a trust
Beneficiary of a trustBeneficiary of a trust
Beneficiary of a trust
Better Financial Education
 
All A
All AAll A
All A
Dolf Dunn
 
The Best Way to Buy Sell or Replace Life Insurance
 The Best Way to Buy Sell or Replace Life Insurance The Best Way to Buy Sell or Replace Life Insurance
The Best Way to Buy Sell or Replace Life Insurance
freddysaamy
 

Similar to Assignment Assignment 2 Donald established an irrevocable trust.docx (20)

Protecting Inheritances
Protecting InheritancesProtecting Inheritances
Protecting Inheritances
 
Asset Protection: Reducing Risk, Promoting Peace of Mind
Asset Protection: Reducing Risk, Promoting Peace of Mind Asset Protection: Reducing Risk, Promoting Peace of Mind
Asset Protection: Reducing Risk, Promoting Peace of Mind
 
Accountable Advice_Mar-Arp-2015_1stNat
Accountable Advice_Mar-Arp-2015_1stNatAccountable Advice_Mar-Arp-2015_1stNat
Accountable Advice_Mar-Arp-2015_1stNat
 
What is a Revocable Trust?
What is a Revocable Trust?What is a Revocable Trust?
What is a Revocable Trust?
 
Elmwood guide to the living trust
Elmwood guide to the living trustElmwood guide to the living trust
Elmwood guide to the living trust
 
Installment sale to an IDIT
Installment sale to an IDITInstallment sale to an IDIT
Installment sale to an IDIT
 
Megan Brand and Susie Germany: Planning for the future needs of your loved on...
Megan Brand and Susie Germany: Planning for the future needs of your loved on...Megan Brand and Susie Germany: Planning for the future needs of your loved on...
Megan Brand and Susie Germany: Planning for the future needs of your loved on...
 
Common deductions taxpayers overlook
Common deductions taxpayers overlookCommon deductions taxpayers overlook
Common deductions taxpayers overlook
 
Kfs ilit
Kfs ilitKfs ilit
Kfs ilit
 
What Is a New York Special Needs Trust
What Is a New York Special Needs TrustWhat Is a New York Special Needs Trust
What Is a New York Special Needs Trust
 
What is a Special Needs Trust in Connecticut?
What is a Special Needs Trust in Connecticut?What is a Special Needs Trust in Connecticut?
What is a Special Needs Trust in Connecticut?
 
Family Inheritance Protection
Family Inheritance ProtectionFamily Inheritance Protection
Family Inheritance Protection
 
Adoption Tax Credit: A Guide for Advocates
Adoption Tax Credit: A Guide for AdvocatesAdoption Tax Credit: A Guide for Advocates
Adoption Tax Credit: A Guide for Advocates
 
3 8 2011 Estate Planning Power Point
3 8 2011 Estate Planning  Power Point3 8 2011 Estate Planning  Power Point
3 8 2011 Estate Planning Power Point
 
Henson trusts slideshare version
Henson trusts slideshare versionHenson trusts slideshare version
Henson trusts slideshare version
 
Basic ep
Basic epBasic ep
Basic ep
 
The Treatments of Trusts in Property Settlements
The Treatments of Trusts in Property SettlementsThe Treatments of Trusts in Property Settlements
The Treatments of Trusts in Property Settlements
 
Beneficiary of a trust
Beneficiary of a trustBeneficiary of a trust
Beneficiary of a trust
 
All A
All AAll A
All A
 
The Best Way to Buy Sell or Replace Life Insurance
 The Best Way to Buy Sell or Replace Life Insurance The Best Way to Buy Sell or Replace Life Insurance
The Best Way to Buy Sell or Replace Life Insurance
 

More from rock73

In a two- to three-page paper (excluding the title and reference pag.docx
In a two- to three-page paper (excluding the title and reference pag.docxIn a two- to three-page paper (excluding the title and reference pag.docx
In a two- to three-page paper (excluding the title and reference pag.docx
rock73
 
In a substantial paragraph respond to either one of the following qu.docx
In a substantial paragraph respond to either one of the following qu.docxIn a substantial paragraph respond to either one of the following qu.docx
In a substantial paragraph respond to either one of the following qu.docx
rock73
 
In a study by Dr. Sandra Levitsky, she considers why the economic,.docx
In a study by Dr. Sandra Levitsky, she considers why the economic,.docxIn a study by Dr. Sandra Levitsky, she considers why the economic,.docx
In a study by Dr. Sandra Levitsky, she considers why the economic,.docx
rock73
 
In a response of at least two paragraphs, provide an explanation o.docx
In a response of at least two paragraphs, provide an explanation o.docxIn a response of at least two paragraphs, provide an explanation o.docx
In a response of at least two paragraphs, provide an explanation o.docx
rock73
 
in a minimum of 1000 words, describe why baseball is Americas past .docx
in a minimum of 1000 words, describe why baseball is Americas past .docxin a minimum of 1000 words, describe why baseball is Americas past .docx
in a minimum of 1000 words, describe why baseball is Americas past .docx
rock73
 
In a minimum 200 word response, describe some ways how the public .docx
In a minimum 200 word response, describe some ways how the public .docxIn a minimum 200 word response, describe some ways how the public .docx
In a minimum 200 word response, describe some ways how the public .docx
rock73
 
In a weekly coordination meeting, several senior investigators from .docx
In a weekly coordination meeting, several senior investigators from .docxIn a weekly coordination meeting, several senior investigators from .docx
In a weekly coordination meeting, several senior investigators from .docx
rock73
 
In a memo, describe 1) the form and style of art as well as 2) the e.docx
In a memo, describe 1) the form and style of art as well as 2) the e.docxIn a memo, describe 1) the form and style of art as well as 2) the e.docx
In a memo, describe 1) the form and style of art as well as 2) the e.docx
rock73
 
In a minimum 200 word response explain the problems that law enforce.docx
In a minimum 200 word response explain the problems that law enforce.docxIn a minimum 200 word response explain the problems that law enforce.docx
In a minimum 200 word response explain the problems that law enforce.docx
rock73
 
In a minimum 200 word response explain some of the reasons why, in.docx
In a minimum 200 word response explain some of the reasons why, in.docxIn a minimum 200 word response explain some of the reasons why, in.docx
In a minimum 200 word response explain some of the reasons why, in.docx
rock73
 
In a maximum of 750 words, you are required to1. Summarize the ar.docx
In a maximum of 750 words, you are required to1. Summarize the ar.docxIn a maximum of 750 words, you are required to1. Summarize the ar.docx
In a maximum of 750 words, you are required to1. Summarize the ar.docx
rock73
 
in a two- to- three page paper (not including the title and referenc.docx
in a two- to- three page paper (not including the title and referenc.docxin a two- to- three page paper (not including the title and referenc.docx
in a two- to- three page paper (not including the title and referenc.docx
rock73
 
In a two- to three-page paper (not including the title and reference.docx
In a two- to three-page paper (not including the title and reference.docxIn a two- to three-page paper (not including the title and reference.docx
In a two- to three-page paper (not including the title and reference.docx
rock73
 
In a group, take a look at the two student essays included in this f.docx
In a group, take a look at the two student essays included in this f.docxIn a group, take a look at the two student essays included in this f.docx
In a group, take a look at the two student essays included in this f.docx
rock73
 
BASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docx
BASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docxBASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docx
BASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docx
rock73
 
Based on Santa Clara University Ethics DialogueEthics .docx
Based on Santa Clara University Ethics DialogueEthics .docxBased on Santa Clara University Ethics DialogueEthics .docx
Based on Santa Clara University Ethics DialogueEthics .docx
rock73
 
Barbara Corcoran Learns Her Heart’s True Desires In her.docx
Barbara Corcoran Learns Her Heart’s True Desires  In her.docxBarbara Corcoran Learns Her Heart’s True Desires  In her.docx
Barbara Corcoran Learns Her Heart’s True Desires In her.docx
rock73
 
Bapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docx
Bapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docxBapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docx
Bapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docx
rock73
 
Barriers of therapeutic relationshipThe therapeutic relations.docx
Barriers of therapeutic relationshipThe therapeutic relations.docxBarriers of therapeutic relationshipThe therapeutic relations.docx
Barriers of therapeutic relationshipThe therapeutic relations.docx
rock73
 
Barada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docx
Barada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docxBarada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docx
Barada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docx
rock73
 

More from rock73 (20)

In a two- to three-page paper (excluding the title and reference pag.docx
In a two- to three-page paper (excluding the title and reference pag.docxIn a two- to three-page paper (excluding the title and reference pag.docx
In a two- to three-page paper (excluding the title and reference pag.docx
 
In a substantial paragraph respond to either one of the following qu.docx
In a substantial paragraph respond to either one of the following qu.docxIn a substantial paragraph respond to either one of the following qu.docx
In a substantial paragraph respond to either one of the following qu.docx
 
In a study by Dr. Sandra Levitsky, she considers why the economic,.docx
In a study by Dr. Sandra Levitsky, she considers why the economic,.docxIn a study by Dr. Sandra Levitsky, she considers why the economic,.docx
In a study by Dr. Sandra Levitsky, she considers why the economic,.docx
 
In a response of at least two paragraphs, provide an explanation o.docx
In a response of at least two paragraphs, provide an explanation o.docxIn a response of at least two paragraphs, provide an explanation o.docx
In a response of at least two paragraphs, provide an explanation o.docx
 
in a minimum of 1000 words, describe why baseball is Americas past .docx
in a minimum of 1000 words, describe why baseball is Americas past .docxin a minimum of 1000 words, describe why baseball is Americas past .docx
in a minimum of 1000 words, describe why baseball is Americas past .docx
 
In a minimum 200 word response, describe some ways how the public .docx
In a minimum 200 word response, describe some ways how the public .docxIn a minimum 200 word response, describe some ways how the public .docx
In a minimum 200 word response, describe some ways how the public .docx
 
In a weekly coordination meeting, several senior investigators from .docx
In a weekly coordination meeting, several senior investigators from .docxIn a weekly coordination meeting, several senior investigators from .docx
In a weekly coordination meeting, several senior investigators from .docx
 
In a memo, describe 1) the form and style of art as well as 2) the e.docx
In a memo, describe 1) the form and style of art as well as 2) the e.docxIn a memo, describe 1) the form and style of art as well as 2) the e.docx
In a memo, describe 1) the form and style of art as well as 2) the e.docx
 
In a minimum 200 word response explain the problems that law enforce.docx
In a minimum 200 word response explain the problems that law enforce.docxIn a minimum 200 word response explain the problems that law enforce.docx
In a minimum 200 word response explain the problems that law enforce.docx
 
In a minimum 200 word response explain some of the reasons why, in.docx
In a minimum 200 word response explain some of the reasons why, in.docxIn a minimum 200 word response explain some of the reasons why, in.docx
In a minimum 200 word response explain some of the reasons why, in.docx
 
In a maximum of 750 words, you are required to1. Summarize the ar.docx
In a maximum of 750 words, you are required to1. Summarize the ar.docxIn a maximum of 750 words, you are required to1. Summarize the ar.docx
In a maximum of 750 words, you are required to1. Summarize the ar.docx
 
in a two- to- three page paper (not including the title and referenc.docx
in a two- to- three page paper (not including the title and referenc.docxin a two- to- three page paper (not including the title and referenc.docx
in a two- to- three page paper (not including the title and referenc.docx
 
In a two- to three-page paper (not including the title and reference.docx
In a two- to three-page paper (not including the title and reference.docxIn a two- to three-page paper (not including the title and reference.docx
In a two- to three-page paper (not including the title and reference.docx
 
In a group, take a look at the two student essays included in this f.docx
In a group, take a look at the two student essays included in this f.docxIn a group, take a look at the two student essays included in this f.docx
In a group, take a look at the two student essays included in this f.docx
 
BASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docx
BASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docxBASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docx
BASEBALLRuns Scored (X)Wins (Y)70869875906547970480787957307166786.docx
 
Based on Santa Clara University Ethics DialogueEthics .docx
Based on Santa Clara University Ethics DialogueEthics .docxBased on Santa Clara University Ethics DialogueEthics .docx
Based on Santa Clara University Ethics DialogueEthics .docx
 
Barbara Corcoran Learns Her Heart’s True Desires In her.docx
Barbara Corcoran Learns Her Heart’s True Desires  In her.docxBarbara Corcoran Learns Her Heart’s True Desires  In her.docx
Barbara Corcoran Learns Her Heart’s True Desires In her.docx
 
Bapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docx
Bapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docxBapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docx
Bapsi Sidhwa’s Cracking India1947 PartitionDeepa Meh.docx
 
Barriers of therapeutic relationshipThe therapeutic relations.docx
Barriers of therapeutic relationshipThe therapeutic relations.docxBarriers of therapeutic relationshipThe therapeutic relations.docx
Barriers of therapeutic relationshipThe therapeutic relations.docx
 
Barada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docx
Barada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docxBarada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docx
Barada 2Mohamad BaradaProfessor Andrew DurdinReligions of .docx
 

Recently uploaded

Electric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger HuntElectric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger Hunt
RamseyBerglund
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
deepaannamalai16
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
mulvey2
 
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdfمصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
سمير بسيوني
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
TechSoup
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
Nguyen Thanh Tu Collection
 
Standardized tool for Intelligence test.
Standardized tool for Intelligence test.Standardized tool for Intelligence test.
Standardized tool for Intelligence test.
deepaannamalai16
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
haiqairshad
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
danielkiash986
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
siemaillard
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
Celine George
 
Stack Memory Organization of 8086 Microprocessor
Stack Memory Organization of 8086 MicroprocessorStack Memory Organization of 8086 Microprocessor
Stack Memory Organization of 8086 Microprocessor
JomonJoseph58
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
Jyoti Chand
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
zuzanka
 
Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...
PsychoTech Services
 
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
PECB
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
imrankhan141184
 
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdfREASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
giancarloi8888
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
RidwanHassanYusuf
 
Nutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour TrainingNutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour Training
melliereed
 

Recently uploaded (20)

Electric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger HuntElectric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger Hunt
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
 
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdfمصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
 
Standardized tool for Intelligence test.
Standardized tool for Intelligence test.Standardized tool for Intelligence test.
Standardized tool for Intelligence test.
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
 
Stack Memory Organization of 8086 Microprocessor
Stack Memory Organization of 8086 MicroprocessorStack Memory Organization of 8086 Microprocessor
Stack Memory Organization of 8086 Microprocessor
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
 
Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...
 
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
 
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdfREASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
 
Nutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour TrainingNutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour Training
 

Assignment Assignment 2 Donald established an irrevocable trust.docx

  • 1. Assignment: Assignment 2 Donald established an irrevocable trust on May 10, 2013. The trust named his wife, Melinda, as trustee and named his daughter, Daisy, as backup trustee. The trust instrument contained the following key provisions: This trust is irrevocable. To the extent allowed by law, the assets in this trust shall not be subject to the beneficiaries’ liabilities or creditors and shall not be subject to assignment or anticipation by any beneficiary. During the lifetime of the grantor, the trustee may, in her sole discretion, distribute assets to or for the benefit of the spouse and/or children of the grantor to the extent that she deems appropriate for their health, education, maintenance and support. However, no distribution shall be made for the benefit of Melinda under this Paragraph without the express consent of at least one child or grandchild of the grantor. During the first five years of the trust’s existence, the trustee may, in her discretion, also use trust income (but not principal) for the benefit of Donald, the grantor. After five years shall have elapsed from the execution of this trust, this power shall cease to exist and shall be null and void. After the death of the last to die of the grantor and his wife, the remaining trust assets, if any, shall be distributed to and among the children of the grantor, in equal shares, per stirpes. You may assume that the remaining provisions of the trust are fairly standard boilerplate provisions and are not relevant to this question. On June 1, 2014, Donald transferred $2,000,000 to this trust. Please answer the following questions regarding this trust: 1) 1. How much (if any) of the transfer is eligible for the gift tax marital deduction? Explain. 2) 2. Are the trust assets part of Donald’s taxable estate? What does this depend on? Explain. 3) 3. Why are gifts to this trust not eligible for the gift
  • 2. tax annual exclusion? What could be done to change that? Please describe. 4) 4. Are the trust assets part of Melinda’s taxable estate? Explain. 5) 5. For income tax purposes, is this trust considered a “grantor trust”? Explain. In answering each question, please make sure to cite applicable authority. For this assignment, that means citing appropriate statutes in the Internal Revenue Code. The answer to each question on this assignment appears in the Internal Revenue Code itself. There is no need to cite regulations or case law. It is expected that all of your answers will cite appropriate sections of the Internal Revenue Code. Be sure to fully explain your answers. You do not need to use IRAC-style essays to answer these questions.