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Hank is a single individual who possesses a life i

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Hank is a single individual who possesses a life insurance policy worth $306,000 that will pay his two children a total of $830,000 upon his death. This year Hank transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to his two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Hank has made only one prior taxable gift of $5 million in 2011. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Leave no answer blank. Enter zero if applicable.) a. Calculate the amount of gift tax due (if any) on the gift. b. Calculate the amount of cumulative taxable transfers for estate tax purposes if Hank dies this year but after the date of the gift. At the time of his death, Hank’s probate estate is $8.2 million and it is to be divided in equal shares between his two children.

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