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During the year, Edward created a trust for the benefit of his five children. The terms...

During the year, Edward created a trust for the benefit of his five children. The terms of the trust declare that his children can only access the trust’s assets after the trust has been in existence for 20 years and the trust does not include a Crummey provision. If Edward transfers $100,000 to the trust during the year, what is his total taxable gift for the year?

A.

$0
B.

$25,000
C.

$85,000
D.

$100,000
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Answer #1
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Edward has created a trust for his 5 children without including any crummey Provision.
The trust does not include crummey provision that means no relaxation in amount, so the total amount of $ 1,00,000 transferred to the trust is taxable.
Hence, Correct option is D $ 1,00,000

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