Maximum value of assets passing


John has an estate valued at $5 million. All of his estate assets are liquid, non-qualified assets owned in John's name alone. John is married to Ann. They have incorporated the A/B trust strategy within their estate planning documents. Prior to 2006, John made taxable gifts totaling $1 million. If John dies in 2006, what is the maximum value of assets passing into his "B" trust?

A. $345,800

B. $500,000

C. $1,000,000

E. $2,000,000

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Finance Basics: Maximum value of assets passing
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