This question is from my Wills Estates and Trusts class.

1. Tom owns a vacation home in Florida. He changed the deed to give his wife Jane, a life estate in the home. His son Joe will receive the property after Janes death. The house appraised for $600,000. If the present value (PV) of the gift to Jane is valued at $450,000, what is the remainder interest gift value to Joe? $______________

Can the gift to Jane be reduced any further? ______ If so, why and how much? _________

Can the gift to Joe be reduced any further?_________ If yes, why? If not, why not? _________

What is the total taxable gift made by Tom to both Jane and Joe? $_____________

If Tom instead gives Jane a life estate in the home with a general power of appointment over the property, how will this affect the total taxable gift amount? ___________