In 2019, Paul Transfers $1,000,000 to a Trust Benefiting His

question 75

Multiple Choice

In 2019, Paul transfers $1,000,000 to a trust benefiting his three children. As trustee, he has the power to determine the amount of distributions each year. Paul dies in the current year when the trust has a value of $1,200,000. How much of the trust's value is included in Paul's estate?

• A) $0
• B) $400,000
• C) $1,000,000
• D) $1,200,000

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Definitions:

Jointly Exhaustive

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Consistent Principle

A rule or guideline in logic or mathematics that does not lead to a contradiction when applied.

Jointly Exhaustive

A condition in which all possible cases or outcomes are covered or accounted for by a set of categories or propositions.

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