With regard to the irrevocable trust, how much is included in Gene's gross estate?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Gene contributed $500,000 to an irrevocable trust and did not retain any right to the trust's assets.  The income beneficiary of the irrevocable trust was Gene's sister, and the remainder beneficiary of the irrevocable trust was Gene's niece.  At the time of the transfer, Gene paid gift tax of $35,000.  Gene died four years later, when the value of the irrevocable trust was $1,200,000.  With regard to the irrevocable trust, how much is included in Gene's gross estate? 

$0

$35,000

$500,000

$1,200,000

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