Estate

Question 1

Assets included in PROBATE estate

Answer 1

singly owned assets
TIC
Community property (1/2 @ death 1)
assets w/ bene as estate of the insured

Question 2

Assets in GROSS estate

Answer 2

probate assets
non probate assets:
-JTWROS & TBE
-life insurance
-general powers of appointment
-GIFT taxes paid w/in 3 yrs. of death

Question 3

marital deduction

Answer 3

UMLIMITED amount of property passes to spouse tax free
-must be incl. in decedent’s gross estate
-must ACTUALLY pass to surviving spouse

Question 3

sale between basis and FMV (dep. gifts)

Answer 3

no gain or loss

Question 3

sale> basis (dep. gifts)

Answer 3

gain

Question 4

sale<FMV (dep. gifts)

Answer 4

loss

Question 5

FMV>basis (apprec. gifts)

Answer 5

use adj. basis to determine gains/losses

Question 6

gift in current tax year: max

Answer 6

exemption ($13.61M) + exclusion (18k) = $13.628M

Question 7

gift tax EXEMPTION

Answer 7

$13.61M

Question 8

gift tax EXCLUSION

Answer 8

$18k/yr. (2024)

Question 9

included in gross estate of GRANTOR

Answer 9

pour over assets
PV of survivior benefit from a joint and survivor annuity
gift to CRT @ death for benefit of spouse
assets in FUNDED rev. trust

Question 10

premium payor as incident of ownership?

Answer 10

DOES NOT mean insurance policy included in estate
DOES NOT mean incident of ownership

Question 11

freezing techniques for estate tax purposes

Answer 11

GRAT
preferred sock
QPRT
private annuity
SCIN

Question 12

tainted trusts & taxation

Answer 12

income taxable to grantor

Question 13

Special use valuation election

Answer 13

real property
farm
residential development

Question 14

Trusts that include HEMS for surviving spouse

Answer 14

trust that provides spouse w/stream of income for life & qualify for marit deduction
irrev. trust established to receive assets disclaimed by surviving spouse of decedent

Question 15

PSC, want to remove from estate, lease prop without losing control of lease terms

Answer 15

use FLP

Question 16

income to donor, at least 5% payout, fixed pmts.

Answer 16

CRAT

Question 17

income to donor, at least 5% payout, variable pmts. inflation protection

Answer 17

CRUT

Question 18

income to charity, only for period of time, then to non. charit. bene

Answer 18

CLAT/CLUT

Question 19

$ to charity OR individual, $ for indefinite period of time

Answer 19

Private foundation

Question 20

additions, $ to specific charity, Pool of $ from other donors

Answer 20

Pooled Income fund

Question 21

no additions, fixed lifetime income to specific charity, no trust

Answer 21

charitable gift annuity

Question 22

SS when on disability

Answer 22

starts @ month 6

Question 23

assets that get step up in basis & are liquid

Answer 23

whole life insurance & stocks

Question 24

you own LI policy, are the insured & die

Answer 24

DB in you estate

Question 25

spouse owns policy, you are insured, gift policy and die w/in three yrs.

Answer 25

DB in your estate

Question 26

spouse owns policy, you are insured, gift policy & don’t change bene

Answer 26

DB in estate (along with probate)

Question 27

you own policy on your spouse who is the insured

Answer 27

replacement cost included in YOUR estate

Question 28

you gift spouse’s policy to your child

Answer 28

NOTHING in estate