9.Which is not a common method of reducing the gross estate?a.Life insurance placed in trust.b.Trusts that do not avoid multiple taxation.c.Gifts made during the donor’s lifetime.d.Special power of appointment.The correct answer is b.Trusts that avoid multiple taxation or qualify for the marital deduction reduce the estate.
10.Several years ago, Bill and his sister, Joy, purchased a tract of real property as joint tenants with right ofsurvivorship (JTWROS). Bill contributed $50,000 toward the $200,000 purchase price and Joy contributed theremaining $150,000. Joy died in the current year, and her will provided that all of her assets pass to her daughter,Cate. The real property was worth $1,000,000 on the date of Joy’s death. The value of Joy’s interest in the propertyincludible in her gross estate is: