Barry creates a trust with property valued at $7 million. Under the terms of the trust instrument, Michelle (age 48) receives a life estate, while Terry (age 24) receives the remainder interest. In the month the trust is created, the interest rate is 4.4%. Determine the value of Barry's gifts.
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A life estate deed is a deed form used to transfer property to one party automatically upon another party's death. The life tenant's interest is called a life estate. The interest that passes to the remainder beneficiary is called a remainder.
Michelle is responsible for maintenance because she is the life estate
owner. She must pay for the new furnace and can choose the type of
furnace without Carol’s consent.
Berry has an ownership interest in the property subject to
the life estate interest, but does not have the right to
occupy, possess or otherwise use the property until the life estate is
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Aug 19th, 2015
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