In the Current Year,Melanie Makes Two Transfers to Peter,her Husband

question 63

Multiple Choice

In the current year,Melanie makes two transfers to Peter,her husband.In June,she gives him land valued at $50,000.In December,she transfers $500,000 to a trust with a bank named as trustee.All income must be paid to Peter monthly for life.At Peter's death,the property passes to their children.Compute the maximum marital deduction assuming Melanie makes the appropriate elections.

• A)$550,000
• B)$536,000
• C)$500,000
• D)$50,000