1) Bob was given the income interest in the trust for his life. Additionally, Bob was given power to assign trust property to his children, at any time previous to Bob's 50th birthday. Which of the given below must Bob avoid, if he doesn’t desire to make taxable gift?
i) Allowing the power to appoint lapse at age 50.
ii) Releasing the power of appointment before age 50.
iii) Appointing the property to his son before age 50.
iv) Appointing the property to his son in his will.
2) You would like to have $1,000,000 collected by time you turn 65 that will be 40 years from now. How much would you have to save each year to attain your aim, suppose you are starting from zero now and you earn 10% annual interest on your investment?