Donna Died on June 1 of the Current Year

question 90

Essay

Donna died on June 1 of the current year. The executor considers the following information when preparing her tax return:
• In 1997, Donna transfers title to her personal residence to her son. The residence is worth $60,000 on the tran date. Donna continued to live alone in the residence until her death. She did not pay any rent. At her death, the r is worth $100,000.
• In 1998, Donna created an irrevocable trust and funded it with $300,000 of assets. Donna names a bank as trustee. According to the trust agreement, all the trust income is to be paid out annually for 25 years. The trustee, however, is to decide how much income to pay each year to Donna's son and daughter. Upon termination of the trust, the assets are to be distributed equally among her two children or their estates. The trust's assets are worth $320,000 when Donna dies.
• In 1998, Donna created a revocable trust with a bank named as trustee. She named her grandchild Joe as the beneficiary for life. Upon Joe's death, the property is to be distributed equally among Joe's descendants. The trus are worth $300,000 when Donna dies. How much would be included in Donna's gross estate?

---

Definitions:

QBO COA

The Chart of Accounts in QuickBooks Online, a structured list of an organization's financial accounts.

Customizing

The process of altering or tailoring features and appearances of products, software, or services to meet specific requirements or preferences.

Tax Return Preparation

The process of completing and filing a tax return form, typically performed by an individual taxpayer or a tax professional.

Authorized Users

Individuals who are officially permitted to access and use certain resources or information within a system.