At the Time of Her Death on October 4, Kaitlyn

question 122

Multiple Choice

At the time of her death on October 4, Kaitlyn was involved in the following transactions.
? Was the sole life beneficiary of a trust (assets worth $2 million) created 10 years ago by Paul (Kaitlyn's husband) . The transfer was by gift of securities then worth $500,000. Paul and Kaitlyn's children are the remainder beneficiaries.
? Owned stock in Mauve Corporation (basis of $800,000 and fair market value of $1 million) . On September 7, a dividend of $48,000 was declared on the stock payable to all shareholders of record on October 3. The $48,000 was received by Kaitlyn's executor on October 19.
? Kaitlyn made a taxable gift of $400,000 in a prior tax year. As to these transactions, Kaitlyn's gross estate includes:

• A) $1,048,000.
• B) $1,448,000.
• C) $3,000,000.
• D) $3,048,000.

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Definitions:

Black Suffrage

The right of African Americans to vote, a central issue in the civil rights movement, especially after the American Civil War and during Reconstruction.

Federal Government

A system of government where powers are divided between a central, national government and various regional governments.

Formerly Enslaved

Individuals who were once subject to slavery but have since been emancipated or released from bondage.

Sea Islands Experiment

An early Reconstruction initiative in the 1860s aimed at redistributing land on the Sea Islands off the coast of South Carolina to newly freed slaves.