Carl made the following transfers during the current year. What are Carl’s taxable gifts for the current year? • Transferred $900,000 in cash and securities to a revocable trust, life estate to himself and remainder interest to his three adult children by a former wife. • In consideration of their upcoming marriage, gave Maria a $90,000 convertible. • Purchased a $100,000 certificate of deposit listing title as “Carl, payable on proof of death to Maria.” • Established a joint checking account with his now-wife, Maria, in December of the current year with $30,000 of funds he inherited from his parents. In January of the following year, Maria withdrew $18,000 of the funds. • Purchased for $80,000 a paid-up insurance policy on his life (maturity value of $500,000). Carl designated Maria as the beneficiary. • Paid $23,400 to a college for his niece Mindy’s tuition and $11,000 for her room and board. Mindy is not Carl’s dependent. • Gave his aunt Betty $52,000 for her heart bypass operation. Betty is not Carl’s dependent.
Carl made the following transfers during the current year. What are Carl’s taxable gifts for the current year?
• Transferred $900,000 in cash and securities to a revocable trust, life estate to himself and remainder interest to his three adult children by a former wife.
• In consideration of their upcoming marriage, gave Maria a $90,000 convertible.
• Purchased a $100,000 certificate of deposit listing title as “Carl, payable on proof of death to Maria.”
• Established a joint checking account with his now-wife, Maria, in December of the current year with $30,000 of funds he inherited from his parents. In January of the following year, Maria withdrew $18,000 of the funds.
• Purchased for $80,000 a paid-up insurance policy on his life (maturity value of $500,000). Carl designated Maria as the beneficiary.
• Paid $23,400 to a college for his niece Mindy’s tuition and $11,000 for her room and board. Mindy is not Carl’s dependent.
• Gave his aunt Betty $52,000 for her heart bypass operation. Betty is not Carl’s dependent.
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