Mitilda transfers her principal residence in March of 2014 to a trust with income to her for life, and a remainder to her daughter or her daughter’s estate.

1. What is included in Mitilda’s gross estate when, in July of 2015, Mitilda sells the income interest, worth $250,000 (based on Mitilda’s life expectancy and the rental value of the property) to her daughter for $250,000? (at all times the residence is worth $1,500,000)

2. What would be included in Mitilda’s gross estate if the sale of the interest in (a) above (for its then fair market value), was made by Mitilda in June 2014?

Answer rating: 100% (QA)

Mitilda Trauges her Prince residence in Marl of 2014 to atruust ... View the full answer