Jamal, who lives in a common law state, would like to place his new bride on the deed to a residence that is currently in his own name. His goals regarding this residence and the transfer are: He does not want the transfer to cause him to use any of his gift tax applicable credit amount. He wants to be able to use the annual exclusion for the transfer. He wants the survivor of himself and his wife to receive title to the deceased spouse's interest in the residence. He does not want his wife to be able to convey her interest in the residence without his consent. He does not want more than 50% of the fair market value of the house to be included in his gross estate if he is the first to die. On the death of the first spouse, he does not want the residence to be subject to a probate proceeding. What is the most appropriate way for Jamal to title the residence when he makes the transfer? A) Tenants by the entirety B) Tenants in common with equal interests C) Jamal as the holder of a life estate, and his wife as the holder of the remainder interest D) Community property
Jamal, who lives in a common law state, would like to place his new bride on the deed to a residence that is currently in his own name. His goals regarding this residence and the transfer are: He does not want the transfer to cause him to use any of his gift tax applicable credit amount. He wants to be able to use the annual exclusion for the transfer. He wants the survivor of himself and his wife to receive title to the deceased spouse's interest in the residence. He does not want his wife to be able to convey her interest in the residence without his consent. He does not want more than 50% of the fair market value of the house to be included in his gross estate if he is the first to die. On the death of the first spouse, he does not want the residence to be subject to a probate proceeding. What is the most appropriate way for Jamal to title the residence when he makes the transfer? A) Tenants by the entirety B) Tenants in common with equal interests C) Jamal as the holder of a life estate, and his wife as the holder of the remainder interest D) Community property
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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Jamal, who lives in a common law state, would like to place his new bride on the deed to a residence that is currently in his own name. His goals regarding this residence and the transfer are:
- He does not want the transfer to cause him to use any of his gift tax applicable credit amount.
- He wants to be able to use the annual exclusion for the transfer.
- He wants the survivor of himself and his wife to receive title to the deceased spouse's interest in the residence.
- He does not want his wife to be able to convey her interest in the residence without his consent.
- He does not want more than 50% of the fair market value of the house to be included in his gross estate if he is the first to die.
- On the death of the first spouse, he does not want the residence to be subject to a probate proceeding.
What is the most appropriate way for Jamal to title the residence when he makes the transfer?
A)
Tenants by the entirety
B)
Tenants in common with equal interests
C)
Jamal as the holder of a life estate, and his wife as the holder of the remainder interest
D)
Community property
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