In 1985,Drew Creates a Trust with $1,000,000 of Securities

question 6

Multiple Choice

In 1985,Drew creates a 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 1992 when the trust is worth $1,500,000,and Paula dies in 2008 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 1992.
• B)None of the trust is included in Paula's gross estate when she dies in 2008.
• C)Drew gets a marital deduction of $1,500,000 when he dies in 1992.
• D)The $2,000,000 value of the trust is included in Paula's gross estate when she dies in 2008.
• E)None of the above.

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