Jack transfers property worth $250,000 to a revocable trust on January 1. Two-and-a-half years later, when the property is worth $300,000, the trust becomes irrevocable. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

A $300,000 gift occurs when the trust became irrevocable because for gift tax purposes, the value of the gift is determined at the time the trust becomes irrevocable, not when the property was initially transferred to the revocable trust.

Jack Transfers Property Worth $250,000 to a Revocable Trust on January