Marcy transferred $40,000 into a trust two years ago. She named her bank as trustee, her husband
Question:
Marcy transferred $40,000 into a trust two years ago. She named her bank as trustee, her husband Marshall as the income beneficiary, and their children Russ and Audrey as the remainder beneficiaries. A trust provision also gave Marshall a right to appoint property to himself for his support in his accustomed manner of living. The bank purchased a $1 million life insurance policy on Marcy’s life soon after the money was transferred into the trust. When Marcy died this year, the value of the policy was $200,000. How much of the trust assets will be included in Marcy’s gross estate?
A. $1 million death benefit.
B. $200,000 value of the policy.
C. $40,000 that was transferred into the trust two years ago.
D. None of the trust assets will be included in her estate.
Expert Answer:
he right answer is the Option B 200000 value of the policy Only policy value of 200000 would ... View the full answer
