In 2000, Mike Transfers $100,000 of Leased Land to a Trust

question 37

Short Answer

In 2000, Mike transfers $100,000 of leased land to a trust. The trust income is payable to Mike's son for 13 years, after which time the land is to revert to Mike. This year, Mike dies when the land is valued at $210,000. The applicable federal rate is 10%, and the reversionary actuarial factor is 0.30. How much of the trust value must be included in Mike's estate?

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Definitions:

Water Molecule

A chemical compound consisting of two hydrogen atoms bonded to one oxygen atom, essential for all known forms of life.

Hydrogen Atom

The simplest type of atom, consisting of one proton in the nucleus and one electron orbiting the nucleus, fundamental to the chemistry of life.

Polar Covalent Bond

A type of chemical bond where two atoms share a pair of electrons more or less unequally, creating a molecule with an electrical polarity due to uneven electron distribution.

Water Molecule

A compound formed by two hydrogen atoms and one oxygen atom, essential for life.