On september 1st linus dies and the trust becomes


On January 15th, Linus transfers property to a trust over which he retains a right to revoke one-fourth of the trust. The trust is to pay Patti 5% of the trust assets valued annually for her life with the remainder to be paid to a qualified charity. On September 1st, Linus dies and the trust becomes irrevocable. Which of the following statements is/are correct?

a. The trust is created January 15th.

b. The trust is created when it becomes irrevocable at September 1st.

c. Linus receives a charitable deduction equal to the present value of 25% of the remainder interest.

d. Linus receives a charitable deduction equal to the present value of 75% of the remainder interest.

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Finance Basics: On september 1st linus dies and the trust becomes
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