Ana creates an irrevocable trust funding it with $400,000 worth of securities. By the terms of the trust. Ana must receive all the income from the trust on basis on her death the remainder is to pass to her two children in equal shares. The value of Ana's life income interest is: 1. determined by backing out the actuarial value of the remainder interest from the fair market value of the trust property as a whole. 2. determined by computing the present value of the life income interest. 3.50. 4.$400,000 01 02 09
Ana creates an irrevocable trust funding it with $400,000 worth of securities. By the terms of the trust. Ana must receive all the income from the trust on basis on her death the remainder is to pass to her two children in equal shares. The value of Ana's life income interest is: 1. determined by backing out the actuarial value of the remainder interest from the fair market value of the trust property as a whole. 2. determined by computing the present value of the life income interest. 3.50. 4.$400,000 01 02 09
Chapter19: Family Tax Planning
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:Ana creates an irrevocable trust, funding it with $400,000 worth of securities. By the terms of the trust. Ana must receive all the income from the trust on an annual
basis: on her death the remainder is to pass to her two children in equal shares. The value of Ana's life income interest is:
1. determined by backing out the actuarial value of the remainder interest from the fair market value of the trust property as a whole.
2. determined by computing the present value of the life income interest.
3.50
4.$400,000
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02
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