Analyze the effect of an irrevocable trust on the gift tax and future estate taxes.

Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax.Suppose you are a CPA, and your client has requested advice regarding establishing an irrevocable trust for his two (2) grandchildren. He wants the income from the trust paid to the children for 20 years and the principal distributed to the children at the end of 20 years.Research the rules regarding irrevocable trusts, gift tax, and estate tax. Be sure to use the six (6) step tax research process.Suggest other significant alternatives that the client could use both to reduce estate tax and to maximize potential advantages of the payment of gift taxes on transfers of property.

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