At the time of her death on October 4, 2016, Kaitlyn was involved in the following transactions. ∙
Was the sole life beneficiary of a trust (assets worth $2 million) created 10 years ago by Paul (Kaitlyn's husband). The transfer was by gift of securities then worth $500,000 (Paul did not make a QTIP election). Paul and Kaitlyn's children are the remainder persons.
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Owned stock in Mauve Corporation (basis of $800,000 and fair market value of $1 million). On September 7, 2016, a dividend of $48,000 was declared on the stock payable to all shareholders on record as of October 3, 2016. The $48,000 was received by Kaitlyn's executor on October 19, 2016.
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Kaitlyn made a taxable gift of $400,000 in 2004.
As to these transactions, Kaitlyn's gross estate includes:

Question

Quizplus · Accepted Answer

The trust assets are included in Kaitlyn's gross estate because she was the sole life beneficiary. The dividend is also included because it was declared before Kaitlyn's death and was payable to her estate. The taxable gift is not included because it was made more than three years before Kaitlyn's death.

At the Time of Her Death on October 4, 2016