Ernie died this year. His will creates a $2,000,000 QTIP trust for his widow. Ernie's executor elects to claim the marital deduction for the QTIP transfer. At the time of the surviving spouse's death, the value of the QTIP trust is $3.6 million. The amount of the QTIP trust included in the surviving spouse's gross estate is

Question

Quizplus · Accepted Answer

Since the executor elected to claim the marital deduction for the QTIP transfer, the full value of the QTIP trust is included in the surviving spouse's gross estate for estate tax purposes. Therefore, the answer is $3,600,000, which is the value of the QTIP trust at the time of the surviving spouse's death.

Ernie Died This Year