he decedent\'s will reads in part \"I give, devise and bequeath to Mary a sum of
ID: 2592295 • Letter: H
Question
he decedent's will reads in part "I give, devise and bequeath to Mary a sum of money equal to the value of one-third of my residuary estate as finally determined."
A-this is a devise of a specific sum of money and Mary will receive it from the estate income tax free.
B-this is not a devise of a specific sum of money and Mary will be taxed on it to the extent of her share of DNI.
C-satisfaction of this devise will always result in capital gain to the estate.
D-satisfaction of a devise so worded violates the rule against perpetuities.
Explanation / Answer
Answer
B- This is not a devise of a specific sum of money and Mary will be taxed on it to the extent of her share of DNI
Reason:- This is because as per the wording the amount to be given to Mary cannot be ascertained upfront and hence Mary will have to be taxed thereupon to the extent of her share in DNI
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