Consider the consequences to Julia who, in the alternative, does the following under Section 2036:

1.Julia transfers her residence to her daughter Amy for one hundred dollars, and Julia continues to live in the residence until her death in 2017.

2.Julia sells the residence to Amy for its fair market value of $3,075,000.00, and Julia continues to live in the residence with Amy until her death in 2017.

3.Julia sells the residence to Amy for an interest-only note with a face value equal to the fair market value of the residence. Shortly after the sale, Julia executes a will that provides for forgiveness of the entire mortgage debt upon Julia's death.Julia continues to live in the residence until her death in 2017 pursuant to a lease entered into with Amy that provides for the rental of the residence at its fair rental value.Julia also forgives $15,000 of the obligation on an annual basis.