Identify which of the following statements is true.
A)Reversionary interests of less than 5% are includible in the gross estate.
B)A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer.
C)If a reversionary interest exceeds 3% of the property's value, the amount that is included in the estate is not the value of the reversionary interest, but rather the date-of-death value of the gifted property less the value of intervening life estates.
D)All of the above are false.

Question

Quizplus · Accepted Answer

A reversionary interest does mean that there is a chance that the property may pass back to the transferor under the terms of the transfer. The other statements are false. Reversionary interests of less than 5% and exceeding 3% are not specifically mentioned in relation to the gross estate. The amount included in the estate for a reversionary interest is the value of the reversionary interest, not the date-of-death value of the gifted property less the value of intervening life estates.

Identify Which of the Following Statements Is True