Which of the following circumstances would cause the gifted property to be included in the donor's gross estate? I. Donor retains a life estate in the gift property.
II) Donor retains the power to revoke or amend the gift.
III) Donor gives more than $14,000 to one donee in one year.
IV) Donor dies within three years of gifting land.

Question

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I: If the donor retains a life estate in the gift property, it means that they still have the right to live in or benefit from the property until they pass away. This indicates that the donor has not completely given up all control over the property and therefore, it will be included in their gross estate.

II: If the donor has the power to revoke or amend the gift, it suggests that they still have control over the property and can change their mind about giving it away. As a result, the gifted property will be included in their gross estate.

III: If the donor gives more than $14,000 to one donee in one year, they will be subject to gift taxes. However, this does not directly impact whether the gifted property will be included in the donor's gross estate.

IV: If the donor dies within three years of gifting land, the value of the gifted property will be included in their gross estate for estate tax purposes. This is known as the "three-year rule" and is intended to prevent people from gifting property shortly before death to avoid estate taxes.

Which of the Following Circumstances Would Cause the Gifted Property