Taxation of Wealth Transfer. 2014 Problem: Grace treated an irrevocable trust to pay the income to Sam (her spouse) for life, and at his dealth to distribute the trust property to their children, Ellen and Frank. Ellen and Frank are Co-Trustees. Sam, Ellen and Frank agree that Ellen and Frank will each be paid $50,000 a year to serve as Trustee and that this amount will be paid from the trust's income. What are the gift tax consequences, if any, of this arrangement?