Estate Flashcards
Capital sensitive - only relates to what?
S-corp
Community property step up?
All LTCG
TBE characteristics
mutual consent, protected from individual creditors
TIC
can transfer to others, division of income
you own policy on someone else & you die
replacement cost (term - unused prem; whole - terminal reserve+unused prem)
3 yr rule (4 triggers)
retained interest, life interest, incidents of ownership, RLT->ILIT
TTEE vs Bene title
legal vs equitable
gift highly appreciated stock to
charity, low tax%, keep for stepup
gift likely to appreciate to
remove future value
gift income producting to
low tax% (watch kiddie)
gift loss property to
don’t - sell & gift $$
gift property subject to depreciation
keep to get depreciation
gift depreciated property to
gift-leaseback or SCIN
out of state property
before death to avoid ancillary probate, or keep for stepup
gift life insurance
based on cash value
Which trusts are present interest ($18k ok)
2503c, direct, crummey, UGMA/UTMA, 529
Which are future interest ($18k not ok)
2503b, remainder interest, income accumulated in trust
more important: guardianship or medical insurance?
guardianship
point of defective trust
avoid estate or income tax, not both
QDT
no marital deduction, exemption available, super annual gift exclusion, taxes deferred
QTIP
LAME = life, annual, mandatory, exclusive
which subject to estate tax? ABC
AC
which goes to remainderman? ABC
BC
which gets HEMS/5&5
B & C but limits growth in B
CLAT/CLUT 5%?
NO
Charitable gift annty vs pooled income fund
no additions vs addiitons, fixed vs variable
disclaimer HEMS & 5&5?
Yes HEMS, no 5&5
2032A always implies what
6166
2032 purpose
reduce estate value
2032 reqs
50% in RE, 25% of RE in biz
303
INC, >35%, redeem stock to pay tax
6166
any biz, >35%, interest only first 4 yrs, 2% int on first $1M indexed
taxable gift calculation
FMV-$18k
EAR calc
compares 2 interst rates with different compounding
IRD deduction only if?
estate tax is paid
