Ramon made the following transactions within three years of his death: -He gave a long-term certificate of deposit, which he had owned for 10 years, to his sister -He released his retained power to amend a trust that he had created to benefit his children -He bought a new car and gave it to his brother for his birthday -He established an irrevocable living trust to provide for his children's education with his brother as the trustee, and funded the trust with $100,000 Which of these transactions will be included in Ramon's gross estate? A) The long-term certificate of deposit B) The release of his retained power to amend the trust C) The irrevocable living trust D) The new car

Ramon made the following transactions within three years of his death: -He gave a long-term certificate of deposit, which he had owned for 10 years, to his sister -He released his retained power to amend a trust that he had created to benefit his children -He bought a new car and gave it to his brother for his birthday -He established an irrevocable living trust to provide for his children's education with his brother as the trustee, and funded the trust with $100,000 Which of these transactions will be included in Ramon's gross estate? A) The long-term certificate of deposit B) The release of his retained power to amend the trust C) The irrevocable living trust D) The new car

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 33P

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Ramon made the following transactions within three years of his death: He gave a long-term certificate of deposit, which he had owned for 10 years, to his sister He released his retained power to amend a trust that he had created to benefit his children He bought a new car and gave it to his brother for his birthday He established an irrevocable living trust to provide for his children's education with his brother as the trustee, and funded the trust with $100,000 Which of these transactions will be included in Ramon's gross estate? A) The new car B) The release of his retained power to amend the trust C) The irrevocable living trust D) The long-term certificate of deposit
Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays 32,000 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of 500,000. As a result, how much gross income does Jason report?
Marie Hardy’s will has the following provisions: "I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. I leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed." a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate? (Make estate distributions in the order mentioned in the question.) cash Jack 41,000 cash Suzanne 18,000 Coca-Cola Cindy 800 Shares House Dennis 0 Other property Wilbur ???? The problem needs a $$ amount for Wilbur, and I cannot get it b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash…
Marie Hardy’s will has the following provisions:“I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. I leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and proper-ties to Wilbur N. Ed.”a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate?b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash in the New Hampshire Savings and Loan, 1,200 shares of Coca-Cola stock, 600 shares of Xerox stock, and other property valued at $22,000. What distributions will be made from this estate?
Carl made the following transfers during the current year. What are Carl’s taxable gifts for the current year? • Transferred $900,000 in cash and securities to a revocable trust, life estate to himself and remainder interest to his three adult children by a former wife. • In consideration of their upcoming marriage, gave Maria a $90,000 convertible. • Purchased a $100,000 certificate of deposit listing title as “Carl, payable on proof of death to Maria.” • Established a joint checking account with his now-wife, Maria, in December of the current year with $30,000 of funds he inherited from his parents. In January of the following year, Maria withdrew $18,000 of the funds. • Purchased for $80,000 a paid-up insurance policy on his life (maturity value of $500,000). Carl designated Maria as the beneficiary. • Paid $23,400 to a college for his niece Mindy’s tuition and $11,000 for her room and board. Mindy is not Carl’s dependent. • Gave his aunt Betty $52,000 for her heart bypass…
QUESTION 20 In the current year, Jane's mother died and willed her a ring. The ring's fair market value at the mother's date of death was $20,000. Six months after her death, the ring was worth $22,000. Jane's mother had purchased the ring for $15,000 five year prior to her death. Assuming the estate's executor did not make a special election, what is Jane's basis in the ring? $20,000 $0 $15,000 $22,000
Question #59 of 85 Rhonda owns the following assets: A residence owned with her husband as joint tenants with right of survivorship A solely owned closely held business that comprises one-half of the value of her large estate A large collection of antique figurines Rhonda's will bequests $10,000 to her only niece and leaves the balance of her estate to her husband if he survives her. Because Rhonda can no longer obtain life insurance, she is looking for other methods to provide the liquidity needed for her estate. Retitling the residence she owns with her husband as tenants by the entirety Selling or giving away the antique figurines Eliminating the bequest in her will to her niece Her husband could waive the executor fees Which of the following actions would have the potential to improve the liquidity of Rhonda's estate? A) II, III, and IV B) III and IV C) I and II D) I, II, and III
Question #59 of 85 Rhonda owns the following assets: A residence owned with her husband as joint tenants with right of survivorship A solely owned closely held business that comprises one-half of the value of her large estate A large collection of antique figurines Rhonda's will bequests $10,000 to her only niece and leaves the balance of her estate to her husband if he survives her. Because Rhonda can no longer obtain life insurance, she is looking for other methods to provide the liquidity needed for her estate. Which of the following actions would have the potential to improve the liquidity of Rhonda's estate? Retitling the residence she owns with her husband as tenants by the entirety Selling or giving away the antique figurines Eliminating the bequest in her will to her niece Her husband could waive the executor fees
During her lifetime, Elaine made several property transfers, including the following: a) The $11,0000 in cash for each of her nieces and nephews that she placed in a revocable trust last year for their benefit b) The $10,000 she paid four years ago to Dr. Meyers to pay off her father's medical bill c) The $28,000 remainder interest given to her daughter, Elsie, two years ago in a irrevocable Grantor Retained Income Trust that Elaine established and funded d) The $10,000 she paid to State University for Elsie's books, and room and board six years ago e) The $29,000 in cash she gave six years ago to her husband Rolf Assume that each of these transfers constitutes Elaine's only transfer to each transferee during the year in which the transfer was made. As her Financial adviser, which of the following transfers would you tell her are fully or partially includible in her total gifts for the purpose of calculating her federal gift tax liability? Explain your response.
Marie Hardy's will has the following provisions: "I leave the cash balance deposited in the First National Bank (up to a total of $50,000) to Jack Abrams. leave $18,000 cash to Suzanne Benton. I leave 1,000 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed." a. Assume that the estate has the following assets: $41,000 cash in the First National Bank, $16,000 cash in the New Hampshire Savings and Loan, 800 shares of Coca-Cola stock, 1,100 shares of Xerox stock, a house, and other property valued at $13,000. What distributions will be made from this estate? b. Assume that the estate has the following assets: $55,000 cash in the First National Bank, $6,000 cash in the New Hampshire Savings and Loan, 1,200 shares of Coca-Cola stock, 600 shares of Xerox stock, and other property valued at $22,000. What distributions will be made from this estate? (Make estate distributions in the order mentioned…
Question #59 of 85 Question ID: 1251855 Your client is terminally ill. Her potential gross estate, valued at $12.9 million, includes the following assets: A life insurance policy on her life, with a death benefit of $500,000; her deceased husband is the named beneficiary A general power of appointment (valued at $500,000) over the assets of a trust established by her husband; her children are the designated remaindermen of the trust A $500,000 retained life estate in the family residence Your client also expects to receive a $500,000 bequest within the next four months from her deceased sister's estate; the client's children are the contingent beneficiaries of the bequest. Your client would like to transfer a portion of her estate to her two children while she is alive to reduce her potential estate tax liability to the greatest extent possible. Which one of the following exclusion techniques would be the most appropriate to reduce the value of your client's potential gross…
After the death of Lennie Pope, his will was read. It contained the following provisions:∙ $110,000 in cash goes to decedent’s brother, Ned Pope.∙ Residence and other personal property go to his sister, Sue Pope.∙ Proceeds from the sale of Ford stock go to uncle, Harwood Pope.∙ $300,000 goes into a charitable remainder trust.∙ All other estate assets are to be liquidated with the cash going to Victoria Jones.a. Prepare journal entries for the following transactions that subsequently occur:(1) Discovered the following assets (at fair value): Cash . . . . . . . . . . . . . . . . . . . . $ 19,000Certificates of deposit .. . . . . .90,000Dividends receivable . . . . . . . . . 3,000Life insurance policy . . . . . . . . 450,000Residence and personal effects . . . . . . . . . . . . . . . . 470,000Shares of Ford Motor Company . . . . . . . . . . . . . . . . 72,000Shares of Xerox Corporation . . . . . . . . . . . . . . . . . . . 97,000 (2) Collected life insurance policy.(3) Collected dividends…