Marcy transferred $40,000 into a trust two years ago. She named her bank as trustee, her husband Marshall as the income beneficiary, and their children Russ and Audrey as the remainder beneficiaries. A trust provision also gave Marshall a right to appoint property to himself for his support in his accustomed manner of living. The bank purchased a $1 million life insurance policy on Marcy’s life soon after the money was transferred into the trust. When Marcy died this year, the value of the policy was $200,000. How much of the trust assets will be included in Marcy’s gross estate?

A.    $1 million death benefit.

B.    $200,000 value of the policy.

C.    $40,000 that was transferred into the trust two years ago.

D.    None of the trust assets will be included in her estate.