In 2019, 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

Since Paul retained control over the trust distributions as trustee, the entire value of the trust ($1,200,000) is included in his estate under the Internal Revenue Code Section 2036.

In 2019, Paul Transfers $1,000,000 to a Trust Benefiting His