In 2000, Mike transfers $100,000 of leased land to a trust. The trust income is payable to Mike's son for 13 years, after which time the land is to revert to Mike. This year, Mike dies when the land is valued at $210,000. The applicable federal rate is 10%, and the reversionary actuarial factor is 0.30. How much of the trust value must be included in Mike's estate?
What will be an ideal response?
0.30 × $210,000 = $63,000
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a. $80,000 b. $105,000 c. $45,000 d. $10,000
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Any debtors may seek relief under Chapter 7 of the Bankruptcy Code
Indicate whether the statement is true or false