In year 1, H creates an irrevocable trust of $100,000 with income to W for life, remainder to his Son.

In year 1, H creates an irrevocable trust of $100,000 with income to W for life, remainder to his Son.

Question:

In year 1, H creates an irrevocable trust of $100,000 with income to W for life, remainder to his Son. H makes a QTIP election. In year 3, when the trust corpus is still worth $100,000, W, age 65, gifts her entire income interest to Daughter. W is in the 40% gift tax bracket and has used up her Applicable Exclusion Amount. What is the value of the gift imputed to W assuming the § 7520 interest rate is 2%?

Expert Answer:

Answer rating: 100% (QA)

Solution We need to find the value of the gift imputed to W F
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