In 2010,Katherine made some taxable gifts upon which she paid a Federal gift tax of $96,000.If Katherine dies in 2012,the $96,000 is included in her gross estate under the "gross up" rule.

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The gross up rule requires the value of any gift taxes paid on taxable gifts made by the decedent within three years of their death to be included in their gross estate. Therefore, the $96,000 gift tax paid by Katherine in 2010 would be included in her gross estate if she dies in 2012.

In 2010,Katherine Made Some Taxable Gifts Upon Which She Paid