Question

Maxwell died August 8, 2016. Of the following transfers made during his life, which is included in his gross estate?

a) Gift made to a charity
b) Gift made to a family member
c) Gift made within three years of death
d) Gift made more than three years before death

Answer 1

Gifts made within three years of death are included...

Step-by-step explanation:

The subject of this question is Tax Law.

In Maxwell's case, gifts made within three years of death would be included in his gross estate. This is because the IRS includes gifts made during the three-year period prior to death in the calculation of an individual's gross estate for estate tax purposes. Therefore, option c) is the correct answer.

Gross estate includes all of the deceased person's assets, such as real estate, bank accounts, investments, and gifts made during that three-year period before death. Other transfers, such as gifts made more than three years before death (option d), would not be included in Maxwell's gross estate.