Question
Ruby established an inter vivos irrevocable trust earlier this year that gave her husband, as the sole income beneficiary, a lifetime right to all income
Ruby established an inter vivos irrevocable trust earlier this year that gave her husband, as the sole income beneficiary, a lifetime right to all income payable on an annual basis. Ruby named her children as remainder beneficiaries. She also gave her husband a general power of appointment over all trust assets during his lifetime and at his death. She funded the trust with $1,000,000 in cash and assets.
Which one of the following most closely approximates Ruby's taxable gift for this transfer?
A) $345,800
B) $0
C) $500,000
D) $1,000,000
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Federal Taxation 2016 Comprehensive
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
29th Edition
134104374, 978-0134104379
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