In 2013, Glen transferred several assets by gift to different persons. Glen dies in 2015. Information regarding the properties given is summarized below.
The transfer of the land and the stocks and bonds resulted in a total gift tax of $60,000. As to these transactions, Glen's gross estate must include:

Question

In 2013, Glen transferred several assets by gift to different persons. Glen dies in 2015. Information regarding the properties given is summarized below.  ​
The transfer of the land and the stocks and bonds resulted in a total gift tax of $60,000. As to these transactions, Glen's gross estate must include:

Quizplus · Accepted Answer

According to the information provided, Glen transferred land valued at $100,000 and stocks and bonds valued at $160,000 by gift in 2013. This resulted in a gift tax of $60,000.

When calculating the gross estate for estate tax purposes, Section 2035 of the Internal Revenue Code requires that certain gifts made within three years of death be included in the gross estate. Specifically, gifts made during this period are included if they were made "in contemplation of death" or were "inadequate consideration."

Since the gifts made by Glen were within three years of his death, they must be analyzed to determine if they were made in contemplation of death or for inadequate consideration. Without additional information, it is impossible to definitively conclude whether or not the gifts were made for either of these reasons.

Therefore, we must assume that the gifts are includable in Glen's gross estate. The total value of these gifts is $260,000 ($100,000 for the land and $160,000 for the stocks and bonds). Thus, the correct answer is C.

In 2013, Glen Transferred Several Assets by Gift to Different