In 2000, Mike Transfers $100,000 of Leased Land to a Trust

question 37

Short Answer

In 2000, Mike transfers $100,000 of leased land to a trust. The trust income is payable to Mike's son for 13 years, after which time the land is to revert to Mike. This year, Mike dies when the land is valued at $210,000. The applicable federal rate is 10%, and the reversionary actuarial factor is 0.30. How much of the trust value must be included in Mike's estate?

---

Definitions:

Unplanned Pregnancies

Pregnancies that are not consciously intended or planned before conception, which can have various socio-economic and personal implications for the individuals involved.

Life Expectancy

The average number of years an individual is expected to live as determined by statistical analysis, based on factors like current age and demographic trends.

Leading Causes

The primary factors or conditions contributing to a particular outcome, such as morbidity or mortality.

Death

The cessation of all biological functions that sustain a living organism, marking the end of life.