Mike and Jane's parents love them very much and want them to be happy and successful. In order to help Mike and Jane reach their goals, their parents create an irrevocable trust for Mike and Jane's benefit. Community Bank is named as trustee of the trust. The parents contributed $$400,000$ cash into the trust in $2021.$ Each subsequent year, the parents contribute an additional $$60,000$ into the trust. The trust includes the following provisions:

The trustee is allowed to make distributions of income and$/$or principal to Mike or Jane in such amounts as the trustee determines in its sole discretion.

Each year, Jane is required to receive $$20,000$ of income distributions.

Each time parents make a contribution to the trust, Mike and Jane are each entitled to withdraw $$30,000$ from the trust for a period of $30$ days following the contribution. After $30$ days, the power to withdraw terminates for the year.

In $2023,$ the trustee distributed $$20,000$ to Jane and $$30,000$ to Mike. In that year, the trust had $$30,000$ of distributable net income.

Please discuss whether parents have made any completed gifts to the trust and whether the gifts qualify for the annual exclusion. Also, please discuss the income tax consequences of the $2023$ distributions $($who is taxed and on how much income$).$ Be sure to fully explain your answer.