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Business, 05.05.2020 20:35 natalie2sheffield

16. Jude and Kyra have a withdrawal right in a trust that allows each of them to withdraw one-half of the assets transferred to the trust each year within a 30 day period. This year, their mother transferred $20,000 to the trust (i. e., each child had the right to withdraw $10,000) and neither child withdrew any money (after the transfer, the trust had $20,000 in assets). What is the gift tax consequence of this lapse (hint: think about the 5% and $5,000 rule)

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