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When Yaakov died in March 2013, his gross estate was valued at $8.5 million.

Published on October 2017 | Categories: Types | Downloads: 34 | Comments: 0
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When Yaakov died in March 2013​, his gross estate was valued at $8.5 million. The marginal estate tax rate exceeded his​ estate's marginal income tax rate because the estate collected only about $5,000 of income. Yaakov willed his spouse $1.2 million. His taxable estate​ (before marital​ deduction) was comprised of the​ following: Gross estate $8,500,000 Debts (350,000) Administration expenses (125,000) Funeral expenses (16,000) Charitable contribution to church (150,000) Assume Yaakov​'s will also provided for setting up a trust to be funded with $550,000 of property with a bank named as trustee. His wife is to receive all the trust income semiannually for​ life, and upon her death the trust assets are to be distributed equally among Yaakov​'s children and grandchildren. a. What was the amount of Yaakov​'s taxable​ estate? Provide two possible answers. (with & without any election) With (Select one) Election Without Election Gift Splitting QTIP Sec 6166 (Select One) Adjusted taxable gifts Gift taxes Marital deduction Taxable estate before marital deduction $________ $________ Minus: (select one) Adjusted taxable gifts Gift taxes Marital deduction Taxable estate before marital deduction $________ $________ Taxable Estate $________ $________ b. Assume Yaakov​'s widow died in December 2013. With respect to Yaakov​'s former​ assets, which items will be included in the​ widow's gross​ estate? Provide two possible​ answers, but you need not indicate amounts.

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When Yaakov died in March 2013​, his gross estate was valued at $8.5 million. The marginal estate tax rate exceeded his​ estate's marginal income tax rate because the estate collected only about $5,000 of income. Yaakov willed his spouse $1.2 million. His taxable estate​ (before marital​ deduction) was comprised of the​ following: Gross estate $8,500,000 Debts (350,000) Administration expenses (125,000) Funeral expenses (16,000) Charitable contribution to church (150,000) Assume Yaakov​'s will also provided for setting up a trust to be funded with $550,000 of property with a bank named as trustee. His wife is to receive all the trust income semiannually for​ life, and upon her death the trust assets are to be distributed equally among Yaakov​'s children and grandchildren. a. What was the amount of Yaakov​'s taxable​ estate? Provide two possible answers. (with & without any election) With (Select one) Election Without Election Gift Splitting QTIP Sec 6166 (Select One) Adjusted taxable gifts Gift taxes Marital deduction Taxable estate before marital deduction $________ $________ Minus: (select one) Adjusted taxable gifts Gift taxes Marital deduction Taxable estate before marital deduction $________ $________ Taxable Estate $________ $________ b. Assume Yaakov​'s widow died in December 2013. With respect to Yaakov​'s former​ assets, which items will be included in the​ widow's gross​ estate? Provide two possible​ answers, but you need not indicate amounts.

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