$72\mathrm{.}0\%$ complete

Question

A trust was set up $4$ years ago by Loreen and Carla to pay annual income to their two adult children. The remainder will be transferred to a grandchild at the death of both children. This year, the trust paid $$37,000$ to City Hospital for the grandchild's medical expenses. How much of the transfer will be excluded from gift tax and GSST$?$

A$.$$$0$

B$.$$$37,000$

C$.$$$36,000$

D$.$$$18,000$