Charlie recently established an ILIT and transferred his life insurance policy with a death benefit of $1 million into the ILIT. Charlie named his wife Sarah and son Steven as a Crummey beneficiaries. As Crummey beneficiaries, each beneficiary is entitled to withdraw one-half of the contributions to the ILIT each year up to the greater of $5,000 or 5% of the ILIT assets (other than the $50,000 transferred to the trust each year to pay the premiums, the trust has no other assets with value). Charlie transfers $50,000 each year to the ILIT to pay the premiums and Charlie wants to reduce the gift tax value of the $50,000 premiums transferred to the trust each year and avoid Crummey lapses. What gifting technique is available to Charlie to reduce the taxable gift

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; proclamation of 1763;