Question 1: Please answer below tax questions:

I Gretchen made the following transfers during her lifetime. Which assets are included in her gross estate?

a. In the last week of Gretchens life she transferred $1.5 million of rare coins to her children.

b. Gretchen established a trust for her son six years ago, and named herself trustee and controls the investments. She funded the trust with $180,000. The value of the trust at her death was $250,000.

c. Four years ago Gretchen made her revocable trust irrevocable when the corpus was worth $300,000. When she died last month, the trust was valued at $380,000.

d. Gretchen was given a limited power of appointment in her mothers trust. At the time Gretchen received the testamentary power, the trust was valued at $450,000. When Gretchen died, the trust was valued at $600,000.

II

Identify gifts that are subject to the gift tax law.

a. You took out a life insurance policy on yourself and named your daughter as your beneficiary. b. You made payments of $10,000 to State University for your sons tuition. c. You contributed $500 to your favorite political candidates campaign. d. You changed the deed to your vacation home in Delaware to give your son the remainder interest worth $80,000.

III

Lance has two adult children from a previous marriage. For the past three years, Lance made gifts to his children as follows:

2013: Gifts of $60,000 to each child.

2014: Gifts of $40,000 to each child.

2015: Gifts of $50,000 to each child

What is the amount of Lances total taxable gifts? Show your work.