Assume that G, age 60, transfers $400,000 to a trust. The income is payable to C, age 60, for life and then the remainder is distributable to C's children. At nearly the same time, C transfers $300,000 of her own assets to a trust. The income from that trust is payable to G for life and then the remainder is distributable to G's children.

Assume further that at G's death, the trust created by C is valued at $500,000, and at C's death the trust created by G is valued at $700,000. How much should be included in each estate?

Answer rating: 100% (QA)

In this scenario for estate tax purposes the value included in each estate would depend on the pri... View the full answer