In 2013,Katherine made some taxable gifts upon which she paid a Federal gift tax of $96,000.If Katherine dies in 2015,the $96,000 is included in her gross estate under the "gross up" rule.

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The gross up rule requires that the gift tax paid on taxable gifts made by the decedent be included in their gross estate. Therefore, if Katherine made taxable gifts in 2013 and paid a gift tax of $96,000, that amount would be included in her gross estate if she dies in 2015.

In 2013,Katherine Made Some Taxable Gifts Upon Which She Paid