[Anonymous]

There’s a note here in the Wiley book about transfers made within 3 years that’s confusing me from the video:

“Transfers within three years of death — Certain gifts within three years of death are included in the gross estate of the decedent.

1. Transfers with retained interests, revocable transfers, and transfers of life insurance are included in the decedent’s gross estate if the transfer is made within three years of death.

2. The property is included at the date of death value.

3. The gift tax paid on the gift is included in the estate for any gifts made within three years of death (this is the gross up provision).”

Am I understanding it right that the only actually transferred property included is retained interest, revocable, and LI transfers? Can someone help me grasp #3? Gift tax paid on transfers in the last 3 years. So if I transfer $20k and die the following year, I have to include the gift tax on the $6k that I paid? Say the gift tax is $2,400. I’d have a gross estate of xxx plus the $2,400, taxable gifts of $6,000, and credit for the tax paid on that of $2,400 (assuming it’s the same tax rate)? So I would actually have to pay Estate tax on the Gift tax that I paid?