Mitilda transfers her principal residence in March of 2014 to a trust with income to her for life, and a remainder to her daughter or her daughter’s estate.

1. What is included in Mitilda’s gross estate when, in July of 2015, Mitilda sells the income interest, worth $250,000 (based on Mitilda’s life expectancy and the rental value of the property) to her daughter for $250,000? (at all times the residence is worth $1,500,000)

2. What would be included in Mitilda’s gross estate if the sale of the interest in (a) above (for its then fair market value), was made by Mitilda in June 2014?