At the Time of His Death, Lance Held a Life

question 74

Multiple Choice

At the time of his death, Lance held a life estate in the LM Trust. Under which of the following circumstances will the LM Trust not be included in his gross estate?

• A)The trust was created by Lance and was revocable. He released the power to revoke four years before his death.
• B)The trust was created by Lance and is irrevocable.
• C)The trust was created by Lance's father.
• D)The trust was created by Lance's deceased wife and the executor of her estate made a QTIP election.
• E)None of the above.

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Definitions:

Intangible Assets

Assets that lack physical substance, such as patents, trademarks, and goodwill.

Physical Substance

The material form or physical presence of an asset, distinguishing tangible assets from intangible ones.

Market Forces

The natural dynamics of supply and demand that determine the prices and availability of goods and services in an economy without external influences.

Comparisons

The act or instance of examining the similarities and differences between two or more items.