Jill's spouse Bob died six months ago. Their daughter is 20 years old and in university. Bob did not have a Will. As Jill is the surviving married spouse, she willreceive $200,000 and then she and her daughter will each receive 50% of the remainder. The $200,000 refers to the dollar value of the estate assets that aredistributed to the surviving spouse before the assets are distributed among all potential beneficiaries. This $200,000 is called.Aholograph assetsВpreferential shareCliquidation assetsnotarized shareEwidower's share

At times a person may die without a will leaving behind an estate that needs to be divided between…

Answered: ill's spouse Bob died six months ago.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The will of Josh O’Brien has the following stipulations:Antique collection goes to Ilsa Lunn.All money in the First Savings Bank goes to Richard Blaine.Cash of $9,000 goes to Nelson Tucker.All remaining assets are put into a trust fund with the income going to Lucy Van Jones. At her death, the principal is to be conveyed to Howard Amadeus.Identify the following:a. Remaindermanb. Trustorc. Demonstrative legacyd. General legacye. Specific legacyf. Life tenantg. Testator
Cardo, a GSIS employee, died in a car accident. His heirs collected the following proceed of life insurance policies: AXA Life, revocable, designated to his wife Alyana - 500,000 Sunlife, irrevocable, designated to his son - 700,000 AON life insurance, revocable, designated to his estate - 300,000 PhilAm Life, irrevocable, designated to his administrator - 400,000 Accident Insurance - 500,0000 GSIS benefits - 150,000 Determine the Gross Estate of Mr. Yap: What are the non-taxable proceed of life insurance?
Several years ago, Georgia transferred $500,000 of real estate into an irrevocable trust for her son, Lee. The trustee was directed to retain income until Lee's 21st birthday and then pay him the corpus of the trust. Georgia retained the power to require the trustee to pay income to Lee at any time and the right to the assets if Lee predeceased her. What amount of the trust, if any, will be included in Georgia's estate if she dies this year when the value of the real estate in trust is $700,000? Amount to be included in Georgia's estate
Diego is a single individual who owns a life insurance policy worth $1.54 million that will be worth $8 million upon his death. This year Diego transferred the policy and all incidents of ownership to an irrevocable trust that pays income annually to Diego's two children for 15 years and then distributes the corpus to the children in equal shares. Assume that Diego has made only one prior taxable gift of $12 million in January of 2018. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required: a. Calculate the amount of gift tax due (if any) on the transfer of the insurance policy. b. Diego died unexpectedly this year after transferring the policy. At the time of death, Diego's probate estate was $25 million, to be divided in equal shares between Diego's two children. Calculate the amount of cumulative taxable transfers for estate tax purposes. Note: For all requirements, enter your answers in dollars and not in millions of dollars. a. Amount of gift tax b. Amount of cumulative taxable…
Nicanor met Inday in 2000. They married the following year. By 2005, Inday stayed home to take care of their two children. In 2021, Nicanor died. Inday provided the following list of properties acquired during their marriage so you can help them file the return and pay the corresponding estate tax, if any: PROPERTIES Family home: Zonal value of land - Php 5,000,000 Assessed value of land – Php 3,000,000 Assessed value of house – Php 5,000,000 Appraiser’s value – Php 20,000,000 1,000 Shares in ABC Corp. a listed company: Opening price – Php 900 Closing price – Php 1,200 Lowest Quote – Php 800 Highest Quote – Php 1,500 Average Value - Php 1,000 2,500 Shares in XYZ Corp. an unlisted company inherited by Nicanor from his father: Audited Financial Statements of XYZ Corp. disclosed the following: Assets – Php 10,000,000 Liabilities – Php 4,000,000 Outstanding shares of stocks – 10,000 Par value Php 100.00 per share Jewelry of Inday (wife) Value at time of purchase - Php…
The terms of a will currently undergoing probate are: “A gift to my brother Chris of $40,000 cash; to my son Eric, $75,000 from my Redstone Savings Bank account; and to my daughter Lauryn, all of my remaining property.” At the time of death, the balance in the savings account was $60,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $95,000. The gift to Chris is a
Many years ago James and Sergio purchased property for $945,000. Although they are listed as equal co-owners, Sergio was able to provide only $420,000 of the purchase price. James treated the additional $52,500 of his contribution to the purchase price as a gift to Sergio. Required: If the property is worth $1,134,000 at Sergio's death, what amount would be included in Sergio's estate if the title to the property was tenants in common? What if the title was joint tenancy with right of survivorship? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Amount to be included in Sergio's estate if: Title to the property was tenants in common Title to the property were joint tenancy with right of survivorship
When Jacob Kohler died unmarried in 2015, he left an estate valued at 7,900,000. His trust directed distribution as follows: $19,000 to the local hospital, $150,000 to his alma mater, and the remainder to his 3 children. Death-related costs and expenses were $15,100 for funeral, $30,000 paid to attorneys, $6,500 paid to accountants, and $35,000 paid to the trustee of his living trust. In addition, debts of $115,000. Calculate the federal estate tax due on his estate.
Cora, 79, has an estate that includes her personal residence valued at $120,000 and $18,000 in a bank account that is solely in her name. She would like to arrange her estate so that she maintains exclusive control of the assets during her lifetime, but at her death the assets will pass to her friend, Mabel, outside of probate. Based on Cora's goals and situation, which of the following are correct statements about will substitutes that she could use? She should put her bank account in tenancy in common with Mabel. She should title her personal residence in joint tenancy with her friend, Mabel. She should execute a will that names her friend, Mabel, as the legatee of the bank account and the devisee of the personal residence. She should place the bank funds in a payable on death (POD) account with Mabel as beneficiary. She should change the title on her personal residence to indicate a life estate reserved for her lifetime and a remainder to her friend, Mabel. A)IV and V…
Gabby’s records contain the following information for 2020: 1. Donated stock having a fair market value of $3,600 to a qualified charitable organization. She acquired the stock five months previously at a cost of $2,400. 2. Paid $700 to a church so her daughter can attend summer camp. 3. Donated a stock having a fair market value of $ 2,000 to a qualified organization. She acquired the stock 10 years ago for $ 8,000. 4. Donated $ 50 to the Democratic National Political Party. 5. Drove 600 miles in her personal auto directly related to services she performed for her church. 6. Gabby spent 100 hours of volunteer time on # 4 above. She makes $ 25 per hour. How much is Gabby’s charitable contribution deduction? a. $ 11,652b. $ 10,534c. $ 10,484d. $ 4,484e. $ 4,450
This year Natalie transferred $500,000 of bonds to a revocable trust with directions to the trustee to pay income to her aunt for five years after which the corpus is to be distributed to Natalie's niece. At year end, the trustee paid $14,000 of income to the aunt. Which of the following is a true statement? Natalie has made a completed gift of $500,000. Natalie has made a taxable gift of $1,000. Natalie has not made a completed gift because the trust is revocable. O Natalie has made a taxable gift of $474,000. O None of these. Show Transcribed Text O the age of the life tenant. G The calculation of the value of a life estate in a trust generally does not depend upon which of the following factors? the Section 7520 interest rate. O the value of the property at the time of the transfer. the manner in which the trust corpus is invested. O All of these. (²
Clara received from her Aunt Sona property with a FMV at the date of the gift of $30,000. Aunt Sona purchased the property five years ago for $35,000. If Clara sold the property for $33,000, what is her gain or loss on the sale?

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