Chapter 12: Wealth Transfer Taxes 9
11.A trust that features a demand provision by a beneficiary equal to the annual exclusion is
12.Silvia has three grandchildren. What is the maximum amount that she can contribute this year to a Section 529 education plan without incurring a gift tax?
13.Which of the following gifts is not eligible for the annual exclusion?
14.Charles gave his three grandsons $20,000 each, his friend, Joe, $15,000, and his daughter $30,000. His second wife, Marla, gave her three children $50,000 each and $50,000 to her church. What are their combined taxable gifts if they do not elect gift splitting?
a. $305,000b. $255,000c. $143,000d. $ 71,000
15. Refer to the information in the preceding problem. What are Charles and Marla’s taxable gifts if they elect gift splitting?
16. Cheryl bought some stock for $110,000. Two years later, she gave the stock to her brother, Harold,
when its value was $100,000. Three years later, Harold sold the stock for $105,000. What is the value
of the gift to Harold, and his gain or loss on the sale, respectively?