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Ara creates an irrevocable trust, funding it with $400.000 worth of sccuritics. By the terms of the trust, Ana must receive all the income from
Ara creates an irrevocable trust, funding it with $400.000 worth of sccuritics. By the terms of the trust, Ana must receive all the income from the trust on an annual hasis on her death the remainder is to pass to her two chlidren in equal shares. The value of Anay life income interest is: 1. determined by backing out the actuarial value of the remainderinterest from the falr market value of the trust property as a whole. 2. determined by computing the present value of the life income interest. 2.50 4.5400.000 1
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