In 2010, Drew Creates an Irrevocable Trust with $1,000,000 of Securities

question 53

Multiple Choice

In 2010, Drew creates an irrevocable trust with $1,000,000 of securities. Under the terms of the trust, Paula (Drew's wife) is granted a life estate with remainder to their children. Drew makes a QTIP election as to the trust. Drew dies in 2012 when the trust is worth $1,500,000, and Paula dies in 2020 when the trust is worth $2,000,000. Which, if any, of the following is a correct statement?

• A) The trust is included in Drew's gross estate when he dies in 2012.
• B) None of the trust is included in Paula's gross estate when she dies in 2020.
• C) Drew does not get a marital deduction in 2010.
• D) All of the value of the trust ($2,000,000) is included in Paula's gross estate when she dies in 2020.

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