Estate Flashcards
Adjusted taxable basis to heirs
Gifts Transferred One Year Before Death
revert back to the original owner
Adjusted taxable basis to heirs
JTWOS
original contribution + decedent contribution
Adjusted taxable basis to heirs
Community Property
- left to other half owner/spouse = “step to” FMV at DoD of both halves
- left to other person = other half owner/spouse…“step to” FMV at DoD of own half
- left to other person = other person…“step to” FMV at DoD of acquired half
Adjusted taxable basis to heirs
IRD
NO “step to” FMV at DoD
carryover basis
GE Inclusion
TE
ex)
Contribution deemed 50/50 always
Ownership 50/50 always
GE 50/50
GE Inclusion
JTWOS (spouse)
ex)
Contribution 50/50 regardless of actual
Ownership 50/50
GE 50/50
GE Inclusion
JTWOS (non-spouse)
ex)
Contribution 60/40
Ownership 50/50
GE 60/40
*Defaults to GE 100/0 for first to die
For example: A father and son buy a lot together. Father pays 80% and son pays 20%. When the father dies, 100% of the lot’s FMV is included in his gross estate, then is adjusted to show 80% of FMV based on documentation of his original contribution. If the lot is worth $100,000 at the father’s death, then $80,000 is included in his gross estate, which the son automatically inherits.
durable power of attorney
remains inforce after incapacity
NOT death
clauses/provisions of a will
- Introductory clause
- declaration clause
- bequest clause
- residuary clause
- guardianship clause
- attestation clause
- self proving clause
- simultaneous death clause
- disclaimer clause
- contingent legatee clause
NO secondary clause
A couple moves from a community state to a common law state…
seperate property remains seperate
gross gifts
FMV on date of gift
Loss?
benef of simple irrevocable trust
20,000 taxable dividend income & 5,000 capital gin
benef recognizes on 1040 20,000
5,000 has not been distributed
