Carolyn made the following transfers during her life.

1. the transfer of her home to an irrevocable trust for the benefit of her four children on January 1, 2018. Carolyn retained the right to live in the home for the remainder of her life. The fair market value of the home at the date of the transfer to the trust was $1,000,000. The fair market value of the home at Carolyn's date of death was $1,200,000.

2. a transfer of $44,000 to an irrevocable trust for the benefit of her four children on January 2, 2013. Carolyn retained the right to a 4% annuity payment from the trust for the years 2013 and 2014. At Carolyn's date of death, the trust had a value of $62,000,

If Carolyn died on July 13, 2018, with regard to the above transfers, how much is included in Carolyn's gross estate?

Select one:

a. $0

b. $1,004,000

c. $1,200,000

d. $1,262,000