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

question 30

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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 2011 when the trust is worth $2,000,000. Which, if any, of the following is a correct statement?


Definitions:

Tolerance

The act or capacity of enduring or being less responsive to a substance (e.g., drugs, alcohol) or stimulus over a period of exposure, or an attitude of acceptance and openness towards the beliefs or practices different from one's own.

Drugs

Substances that are used to treat, cure, prevent, or diagnose a disease or to promote well-being.

EEG Pattern

The recording of electrical activity in the brain, analyzed in patterns to diagnose conditions or to understand neurological function.

Sleep Pattern

The habitual arrangement of the cycles of sleep and wakefulness over a 24-hour period.

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