In January of 2015, Curtis created an irrevocable trust. Donna (age 35) was to receive income...
In January of 2015, Curtis created an irrevocable trust. Donna (age 35) was to receive income for life and the remainder to be distributed to Donna’s children upon Donna’s death. Curtis funded the trust with stock and bonds worth $750,000. Roberta was named the trustee. Donna died in January of 2019 when the trust was worth $1,000,000. How much of the trust was included in Donna’s estate?
-
$1,000,000
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$750,000
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$0
-
$500,000
-
$250,000
Homework Answers
1) An estate includes all of the property that a person leaves behind when he or she passes away.
2) It is given that Donna was to receive only the income from life out of the trusts and the remainder was to be distributed to Donna's children. So no asset or propoerty was transfered from the trust to Donna's estate. Therfore the answer to the proble is $ 0.
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