Jessica won some money in a lottery and made some taxable gifts to her family. She needs your assistance filing IRS Form 709 this year. Which gift can be reduced by an annual exclusion?

1. Jessica created a 2503(b) trust with $85,000 to fund her 10-year-old nephew’s future college education.
2. Jessica paid a hospital $45,000 for her mother’s medical bills that were not covered by health insurance.
3. Jessica changed the deed on her home which added her son as a remainder beneficiary in the property.
4. Jessica funded an irrevocable trust with $100,000 to provide discretionary supplemental support for her disabled brother.

Answer rating: 100% (QA)

Jessica created a 2503c trust with 85000 to fund her 10year old nephews fu... View the full answer