Tim owns stock with an adjusted basis of $3,500 and fair market value of $10,500. Tim expects the stock to continue to appreciate. Ben, Tim's best friend, recently had surgery for cancer. Bens physicians have told her that her life expectancy is between six months and one and a half years. One day at lunch, the two friends were discussing their tax situations (both believe they pay too much), when Ben mentioned that he had read a newspaper article about a tax planning opportunity that might be suitable for Tim. Tim would make a gift of the appreciated stock to Ben. In her will, Ben would bequeath the stock back to Tim. Because Ben is confident he will live longer than a year, the basis of the stock to Tim would be the fair market value on the date of Bens death. Ben would "feel good" because he had helped Tim "beat the tax system." You are Tims tax adviser. How will you respond to Bens proposal?

Show work too please!