Eight years ago, Charlie established a trust under which he retained income for his life with remainder to his son Ken. On finding that he had a terminal disease, Charlie transferred his life interest to Ken. The trust's sole asset then consisted of an apartment house. At the time of the transfer, Charlie's life estate was worth $450,000 and Ken's remainder interest was worth $300,000. Charlie paid $150,000 in gift tax on the transfer. At Charlie's death 15 months later, the value of the trust's assets (the same apartment house) was $1,200,000. 

What value, if any, is includible in Charlie's taxable estate?

Answer rating: 100% (QA)

The value includible in Charlies taxable estate would be the value of the apar... View the full answer