Alexis Transferred $400,000 to a Trust with Directions to Pay

question 119

Multiple Choice

Alexis transferred $400,000 to a trust with directions to pay income to her spouse,William,for his life.After William's death the corpus of the trust will pass to William's son.If the life estate is valued at $72,000,what is the total amount of the taxable gifts?

• A) $386,000.
• B) $58,000.
• C) $374,000.
• D) $328,000.
• E) None of the choices are correct.

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Definitions:

Charged Species

Ions or molecules that have an electric charge, either positive (cation) or negative (anion).

Stabilization

The process of making a compound, mixture, or structure more stable or resistant to change, often through chemical reactions or physical processes.

Most Acidic

Describes the substance with the highest acidity in a given context, typically having the lowest pH or greatest ability to donate a proton (H+ ion).

Proton

A subatomic particle found in the nucleus of an atom, possessing a positive electrical charge.