Question - Bill sets up two trusts in 2008. The first is for his son, John, to which Bill contributes $200,000 during 2008. The income interest is valued at $100,000 and the remainder interest's value is $100,000. Bill plans to continue contributing money to the trust each year, but John can withdraw only the lesser of $11,000 or the amount transferred to the trust each year. The trustee can pay the amount annually until John receives the trust assets at age 40. The second trust is for Bill's 10-year old son, Tim. Bill contributes $50,000 in 2008. The income interest is equal to $10,000 and the remainder interest is equal to $40,000. The trustee may distribute the income or principal to Tim until he reaches age 21, at which time the assets will be transferred to Tim. In 2009, Bill contributes $10,000 to John's trust and $15,000 to Tim's trust. What types of trusts are these and what are Bill's gift tax consequences in 2008 and 2009?