Assume that G, age 60, transfers $400,000 to a trust. The income is payable to C, age 60, for life and then the remainder is distributable to Cs children. At nearly the same time, C transfers $300,000 of her own assets to a trust. The income from that trust is payable to G for life and the remainder is distributable to Gs children.

A. Is either trust included in Gs gross estate upon his death?

B. Assume further that at Gs death, the trust created by C is valued at $500,000, and at Cs death the trust created by G is valued at $700,000. How much should be included in each estate?