In 2017, Paul transfers $1,000,000 to a trust benefiting his three children. As trustee, he has the power to determine the amount of distributions each year. Paul dies in the current year when the trust has a value of $1,200,000. How much of the trust's value is included in Paul's estate?

Question

Quizplus · Accepted Answer

The entire $1,200,000 is included in Paul's estate because he retained control over the trust distributions, which is a retained interest under estate tax rules.

In 2017, Paul Transfers $1,000,000 to a Trust Benefiting His