You give $1,000,000 to your college in an irrevocable trust with the stipulation that you receive the earnings from the gift.You are guaranteed an annual 5% return on your investment.What will your income be from your gift?

Question

Quizplus · Accepted Answer

The annual income from the gift will be 5% of $1,000,000, which is $50,000. This income is guaranteed and not affected by any taxes or marginal tax rates.

You Give $1,000,000 to Your College in an Irrevocable Trust