This is one question and this question has 4 parts to this. Here we go.

On June 1, 2010, Grantor creates an IDGT (Intentionally Defective Grantor Trust) and sells to the IDGT a 20% limited partner interest in ABC Partnership. In exchange, the IDGT delivers to the Grantor a "balloon" promissory note with a term of nine years and interest payable annually at a rate of 2%. The current undiscounted value of a 100% interest in the partnership is $10,000,000. Assume that a 30% valuation discount applies.

Part A - If Grantor first wishes to make a 10% "seeding" gift, what is the amount of cash or other property that Grantor must gift to the IDGT? Please explain your answer in a math like sense.

10% of $10,000,000 - $1,000,000 and it is okay because of the Gift Exclusion Provisions.

Part B - What is the original Principal amount of the promissory note?

$10,000,000 is the original Principal Amount per the question.

Part C - What amount is due on the maturity date of the promissory note?

Using a HP 12C Calculator, 2% of 9-years at $10,000,000, amount due would be - $11,970,379.93

Part D - Suppose the Grantor dies on June 1, 2016, immediately after having received the sixth annual interest payment due on the promissory note. At that time, the discounted value of 20% limited partner interest in the ABC Partnership is $2,000,000. What amount is included in Grantor's gross estate relate to the sale transaction described in this problem?

Assuming a 30% valuation discount being applied. 20% is used up. 10% is left over. 10% of $10,000,000,000 - $1,000,000. So this is 6 years later from 2010 which would be 2016! So These assumptions are as of then!