Andy Anderson transfers 15 million to a spray trust which al

Andy Anderson transfers $1.5 million to a spray trust (which allows the trustee to distribute sums to either or both beneficiaries at the trustee\'s discretion) for his son and grandson and allocates $750,000 of the exemption to the transfer. At his son\'s death, the property is worth $6 million. On the assumption that a taxable termination has taken place, what is the taxable amount?

Solution

Answer :- Taxable amount = 1500000 + 750000 (1 Million = 1000000, Accordingly, 1.50 Million = 1500000)

= $ 2250000.

Conclusion :- Taxable amount in the given question = $ 2250000.