In 2012,Paul Transfers $1,000,000 to a Trust Benefiting His Three

question 79

Multiple Choice

In 2012,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:

Conversion Factor

A numerical value used to convert a quantity expressed in one unit to the equivalent quantity expressed in another unit.

Pounds

A unit of weight commonly used in the United States, equivalent to 0.453592 kilograms.

Kg

Abbreviation for kilogram, a unit of mass equal to one thousand grams.

Dimensional-Analysis

A method in mathematics and physics to check the correctness of an equation by analyzing the dimensions (units) of the quantities involved.