At the time of her death on October 4, 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 and Kaitlyn's children are the remainder beneficiaries.
? Owned stock in Mauve Corporation (basis of $800,000 and fair market value of $1 million). On September 7, a dividend of $48,000 was declared on the stock payable to all shareholders of record on October 3. The $48,000 was received by Kaitlyn's executor on October 19.
? Kaitlyn made a taxable gift of $400,000 in a prior tax year. As to these transactions, Kaitlyn's gross estate includes:

Question

Quizplus · Accepted Answer

The trust assets are included in the gross estate because Kaitlyn was the sole life beneficiary. The dividend is included because it was declared before Kaitlyn's death and was received by her executor after her death. The gift is not included because it was made in a prior tax year.

At the Time of Her Death on October 4, Kaitlyn