Estate

Question 1

What is added to the Gross Estate?

Answer 1

Life insurance
General POA
Gift Taxes PAID
Retained Interests

Question 2

What is added to the taxable estate?

Answer 2

Taxable Gifts (not included in Gross Estate)

Adjusted gross estate -

Taxable estate = adjusted gross estate MINUS marital and charitable deductions

Question 3

Adjusted Gross Estate

Answer 3

Adjusted gross estate is gross estate

MINUS:

funeral
admin
debts
gift taxes due
casualty losses

Question 4

Taxable Estate

Question 5

Gifting Strategies

Answer 5

Apprecieatd Prop = gift to charity or donee in lower bracket.

property likely to appreciate = good gift to remove future growth from donors estate

income producing property = good gift only if donee is in lower tax bracket.

Loss property = sell to take the loss and then gift the proceeds from the sale.

Out of state prop = gift to avoid ancillary.

Property subject to depreciation = keep until fully depreciated

fully depreciated prop = excellent gift using gift lease back

life insurance = excellent to gift - valued at replacement value but blossoms to face value.

Question 6

Gifts of future interest

Answer 6

Not eligible for annual gift tax exclusion (17,000)

only gifts of present interest

gifts of future interest: remainder interest & trust where income is accumulated for a number of years