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This Year Anthony Transferred $250,000 of Bonds to a Trust

Question 56

Multiple Choice

This year Anthony transferred $250,000 of bonds to a trust with directions to the trustee to pay income to his son for the next 20 years. After 20 years the trust corpus would revert to Anthony. Which of the following is a true statement?


A) Anthony has made a $250,000 gift.
B) Anthony has made a $235,000 taxable gift.
C) Anthony has not yet made a complete gift.
D) Anthony has made a complete gift of the income interest only.
E) None of the choices are true.

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