In 2007,Katherine made some taxable gifts upon which she paid a Federal gift tax of $96,000.If Katherine dies in 2009,the $96,000 is included in her gross estate under the "gross up" rule.

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The "gross up" rule is applied to ensure that the decedent's gross estate reflects the full value of any taxable gifts made during their lifetime. This means that the amount of Federal gift tax paid on those gifts is added back to the estate, increasing the overall estate tax liability. Therefore, in this case, the $96,000 Federal gift tax paid by Katherine in 2007 would be included in her gross estate if she died in 2009.

In 2007,Katherine Made Some Taxable Gifts Upon Which She Paid