Mark dies survived by his wife, Marie. Mark's will was drafted some 30 years before...
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Mark dies survived by his wife, Marie. Mark's will was drafted some 30 years before his death. It provides for a $500,000 conditional devise to a trust that provides for income distributions to Marie for her lifetime, remainder to the couple's children. The condition on the devise is that Marie must contribute an equal amount of her own funds to the trust. Marie, who is 78 years old at the time, accepts the conditional devise by contributing $500,000 of her separate property to the trust. The value of the entire trust grows to $1.4 million at Marie's death. In general terms, describe the gift tax consequences to Marie upon funding the trust and the estate tax consequences to Marie upon her death.
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