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Question - In 2006 Heinz Doofenshmirtz established a trust under which he retained income for his wife with remainder to his daughter Vanessa. In 2011 Heinz relinquished his lifetime income interest and transferred the income interest in the trust to Vanessa. Heinz died 18 months later. At the time of the transfer Heinz's lifetime interest was worth $100,000 and Vanessa's remainder interest was worth $325,000. Heinz paid $20,000 in gift tax on the transfer. At Heinz/s death on 5/7/12 the value of the trust's assets was $425,000.
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