On January 1 , 2 0 1 0 , Amelia transferred marketable securities with a fair market value of $ 1 , 0 0 0 , 0 0 0 to an irrevocable trust and named her son, Enzo, as beneficiary of the trust. Because Enzo did not have the ability to pay income taxes on the interest and dividends that would be generated by the trust, Amelia retained the power to substitute assets in the trust. The retained power caused her to be considered the owner of the trust for income tax purposes. Amelia therefore paid income taxes on income generated by the trust since its inception. Amelia died in 2 0 2 4 when the value of assets held by the trust was $ 1 0 , 0 0 0 , 0 0 0 . The executor of Amelia ' s estate determined that the power Amelia had retained over the trust for income tax purposes did not result in the trust assets being included in her estate. At the time of her death, Amelia did not have the right to revoke or amend the trust. The trust assets passed to Enzo upon Amelia ' s death. Enzo believes his basis in the assets to be $ 1 0 , 0 0 0 , 0 0 0 , the value of the assets on the date of Amelia ' s death. Do you agree with the position taken by the executor regarding the exclusion of trust assets from Amelia ' s estate? Do you agree with Enzo ' s position regarding his basis in trust assets? Partial list of research aids: 1 0 1 4 ( b ) . Reg. 1 . 1 0 1 4 - 1 ( a ) . Rev.Rul. 2 0 2 3 - 2