Carolyn made the following transfers during her life:
• The transfer of her home to an irrevocable trust for the benefit of her four children on 5 years ago. Carolyn retained the right to live in the home for the remainder of her life. The fair market value of the home at the date of the transfer to the trust was $1,000,000. The fair market value of the home at Carolyn's date of death was $1,200,000.
• A transfer of $44,000 to an irrevocable trust for the benefit of her four children 5 years ago. Carolyn retained the right to a 4% annuity payment from the trust for 2 years only. At Carolyn's date of death, the trust had a value of $62,000.
If Carolyn died today, with regard to the above transfers, how much is included in Carolyn's gross estate?
$1,200,000
$0
$1,044,000
$1,262,000
