When he was 65, Edward transferred his home worth $300,000 to an irrevocable trust. By the terms
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When he was 65, Edward transferred his home worth $300,000 to an irrevocable trust. By the terms of the trust, Edward has the right to remain in the house for a period of four years. At the end of that period, the trust will terminate and the house will be distributed to his son, Kevin, age 44 (or to Kevin’s estate). (a) At a rate of 8%, calculate the current value of Kevin’s remainder inter- est. (Note: this would be a vested gift to Kevin). (b) Recalculate Kevin’s remainder interest if it was contingent on Edward surviving the four-year income period (i.e., he kept a contingent reversion).
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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