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Harold and Susan Dawson, a married couple, made two separate gifts during Year $1.$ The first gift was $$25,000$ to their daughter Cindy. Cindy is allowed immediate access to the money to use as she sees fit. The second gift was to their son Michael in trust in the amount of $$10,000.$ The income and principal are to stay in trust until Michael is $21,$ and at such time, the trustee has the discretion to distribute income and principal. Michael is currently $16$ years old. Harold and Susan have made the appropriate gift$-$splitting election.

Assuming an annual gift tax exclusion of $$16,000,$ the total amount of taxable gifts made in Year $1$ is:

Harold and Susan Dawson, a married couple, made two separate gifts during Year $1.$ The first gift was $$25,000$ to their daughter Cindy. Cindy is allowed immediate access to the money to use as she sees fit. The second gift was to their son Michael in trust in the amount of $$10,000.$ The income and principal are to stay in trust until Michael is $21,$ and at such time, the trustee has the discretion to distribute income and principal. Michael is currently $16$ years old. Harold and Susan have made the appropriate gift$-$splitting election.

Assuming an annual gift tax exclusion of $$16,000,$ the total amount of taxable gifts made in Year $1$ is:

$$10,000$

$$0$

$$35,000$

$$19,000$

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