In 2020, 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

The entire value of the trust, $1,200,000, is included in Paul's estate because he retained the power to determine the amount of distributions, which under IRS rules, causes the trust assets to be included in his estate for estate tax purposes.

In 2020, Paul Transfers $1,000,000 to a Trust Benefiting His