How much is included in Stephanie's probate estate related to the revocable living trust? $0
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Stephanie contributed $450,000 to a revocable living trust eight years ago. She named herself as the income beneficiary and her only son as the remainder beneficiary. The term of the trust was equal to Stephanie's life expectancy. Stephanie died this year, when the fair market value of the trust's assets is $2,000,000. How much is included in Stephanie's probate estate related to the revocable living trust?
$0
$345,800
$450,000
$2,000,000
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- Richard placed his portfolio of income-producing stock valued at $200,000 into an irrevocable trust. The trust provides that the trustee is to pay to Richard 7% of the initial value of the trust annually for a period of 12 years. After the 12-year term, the trustee is directed to pay the remaining assets in the trust to Richard's daughter. Which of the following are CORRECT statements regarding the income, gift, or estate tax implications of this trust arrangement? Richard will owe a gift tax based on the present value of the remainder interest given to his daughter. Taxation of the income earned by this trust will be affected by the grantor trust rules. If Richard dies during the 12-year term of the trust, the trust assets will be included in his gross estate. The right that Richard has retained in this trust is considered to be "qualified" for purposes of the Chapter 14 rules. A) II and IV B) I and III C) I, II, III, and IV D) I and IVDuring the current year, Madison reports AGI of $195,000. As part of some estate planning, she donates $15,000 to her alma mater, Autumn University, and $70,000 to a private nonoperating foundation. (Assume the year is 2019.) Requirements a. What is the amount of Madison's charitable deduction for the current year? b. Assume the same facts in Part a except that she donates $25,000 to Autumn University. Requirement a. What is the amount of Madison's charitable deduction for the current year? Amount Charitable contribution for the year $ Charitable contribution carryover $ Requirement b. Assume the same facts in Part a except that she donates $25,000 to Autumn University. Amount Charitable contribution for the year Charitable contribution carryoverDuring 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.
- When Jen dies this year her gross estate included the following: • Cash $249,295 held in Jen's name • Investments $2,461,396 title Tenants in Common with her husband Jake a U.S. Citizen • Life Insurance $1,982,343 son is beneficiary • House $1,520,148 owned solely by Jen Jen's will leaves $20,000 to her son and the remainder of her probate assets to Jake. Estate Administrative expenses are $25,000 for administrative expenses, $50,000 for funeral expenses and $200,000 for a mortgage. What is the amount of the marital deduction on Jen's estate tax return?Randy established a trust, reserving in himself the power to terminate the trust if he is not satisfied with its operation. After two years, the power to terminate the trust expires. Randy transferred commercial real estate into the trust and specified that the income be payable annually for the benefit of his adult daughter, Michelle. Randy died one year after creation of the trust instrument. One estate tax implication for Randy of this trust is that the trust property is A) included in his estate because a family member is receiving a benefit from the trust. B) not included in his estate because a transfer for the benefit of a minor is exempt from tax. C) included in Randy's estate because he still had the power to terminate the trust at his death. D) not included in his estate because the power to terminate the trust eventually expires.Marcelo took out a life insurance policy for Php 1,000,000 naming his only son as beneficiary. The term of the insurance policy is 20 years. Total premiums paid on the policy was Php 700,000. Marcelo outlived the policy and received the proceeds of Php 1,000,000. a. Is the amount received by Marcelo taxable? b. If Marcelo died on the tenth year and his son received the Php 1 million, is the amount received taxable?
- The trustee of the Spratt Trust has the discretion to distribute the income or corpus of the trust in any proportion between the two beneficiaries of the trust, Edwin and Dolly. Under the trust instrument, Edwin must receive $20,000 from the trust every year. In the current year, the trust's accounting income is $100,000, and its DNI is $90,000. In addition to the required $20,000, the trustee pays Edwin $30,000 and Dolly $50,000. What amount income is recognized by the beneficiaries as the result of the distributions? Round any division to three decimal place and use in subsequent computations. If an amount is zero, enter "0". a. Edwin: First-tier Distribution of $fill in the blank 1 and Second-tier Distribution of $fill in the blank 2.b. Dolly: First-tier Distribution of $fill in the blank 3 and Second-tier Distribution of $fill in the blank 4You have been notified by the family attorney that you are the sole heir to your lost uncle's estate. You have two options for receiving the inheritance: receive $500,000 at the end of each of the next 10 years or receive a lump sum payment of $2,500,000. Determine which is the better option.Andy, 68, has a gross estate currently valued at $2,500,000 that consists primarily of highly appreciated growth securities. Within the last six months, Andy transferred $500,000 worth of these securities to his wife, Harriet. His cost in these securities was $200,000. Harriet recently died. The fair market value of the transferred securities at the time of her death was $500,000. The securities passed to Andy under the terms of Harriet's will. Which one of the following is an income tax implication of the transfer of stock? A) Andy must recognize $300,000 in capital gain on the stock as of Harriet's death. B) If Andy sells the stock he received from Harriet immediately after her death, his gain, if any, will be deemed to be short-term capital gain. C) Andy's basis in the stock is $200,000. D) Andy's basis in the stock is $500,000.
- In 2008 Anne and Jim established a living trust. Anne and Jim have 2 children Olivia and Patrick (ages 19 and 21) from the current marriage and Anne has a child Elliott (age 33) from a prior marriage. Their main concern was to protect the assets for their children. The trust provided for Survivor, Bypass and QTIP trusts upon the first spouse’s death. When Jim died in 2011 the couple held the following property in their trust: Jim’s SP $2,600,000 CP $20,000,000 Anne’s SP $2,400,000 A. What is the amount in Anne’s taxable estate if she dies in 2021. The following are values of the various trusts in 2021: Survivor trust $15,000,000 Bypass trust is $9,000,000 QTIP is $10,000,000? What assets are included in Jim’s estate? Is there any estate tax payable? Or could you apply marital deduction? C. Show allocation of assets into Survivor’s trust, Bypass trust and QTIP trust.Your client, age 65, has a gross estate valued at $15.2 million. He and his second wife have two teenage children. In addition, your client has two children from his first marriage who are in their mid-30s. His objectives are: to leave an income stream and a portion of his estate to his current wife; to leave a portion of his estate in trust for the teenage children from his current marriage; to ensure that the children from his first marriage receive a portion of his estate; and to reduce his federal estate tax liability. Which one of the following transfers is most appropriate for achieving the client's objectives? A) combination A-B-C (power of appointment, family bypass, and QTIP) trust arrangement B) outright transfer of the entire estate into a power of appointment trust C) family bypass trust equal to the applicable exclusion amount for the teenage children, with the remainder in a marital trust for his current wife D) outright gift of two-thirds of the…Bill and Brittany's father, Stuart, died in January 2021. Under Stuart's will, Stuart gave Bill his investment property in Bathurst and his holiday house in Lithgow to Bill. Brittany was given Stuart's principal place of residence at Meadowbank. Stuart acquired the Bathurst property in 1980 for $200,000 and acquired the Lithgow property in 1995 for $400,000. At the date of Stuart's death, the Bathurst property was valued at $1,000,000 and the Lithgow property $800,000. Bill wants to sell both properties. Advise Bill on the CGT consequences of following through with the sale of both properties.
