Estate Flashcards
Gifting of life insurance to public charity
Charitable deduction?
Cash value or basis … whichever is less
When you gift more than 13,160,000 in a single year when is it taxed?
That same year:
Gift amount - 18k - 13.16 x 40%
What is the total amount that can be given without incurring a gift tax?
Annual exclusion 18k + 13.61m
What is the gift annual tax exemption?
13.61m
What is the gift tax exclusion?
18k
What are the four future interest gifts that can count as current interest gifts?
- UGMA/UTMA
- 2503(c)
- Section 529
- Crummy provision/power
CRAT
Charitable reminder annuity trust
- no additions
- payable to any charity(s)
- must get 10% ending value
- period for life or max of 20 yrs
- owner gets fixed % income from trust must be above 5% a year
CRUT
-additions allowed
- payments are variable due to assets being revalued yearly
- payable to any charity(s)
- charity must receive 10% of value
- period for life or max of 20 yrs
Charitable Lead Trust (CLAT CLUT)
-charity receives income
- benes receive corpus in the future
- donor receives upfront income tax deduction
- assets must produce income!
What is a skip person
- Two or more generations younger
Transfer for value
Life insurance is not included in gross estate is transferred for value (sold or owner receives something in return)
What type of entities operates under conduit principle?
Sole props, dynasty trusts, llcs
IRD
Income in respect to decedent:
Income person is entitled to at death that was not taxed in decedent’s life
Type of gain appreciated inherited property receives
LTCG! …Always
Net gift formula
Donor must have used 13.61m
When the donee pays the gift tax.
Basis/1.4
PIGS - Intra Family and other business transfer techniques
Private Annuity
Installment Sale
Grat - Grantor Retained Annuity Trust
Self-canceling installment note
Installment sale
