Estate and Gift Taxation: Determination of Taxable Estate

Question 1

IRC Section 2053 details the deductions

Answer 1

allowed against a decedent’s gross estate.

Administrative expenses and state estate taxes are specifically allowed

Question 2

A beneficiary

Answer 2

may also serve as an executor for the estate.

There are many responsibilities of an executor, one of which is filing a final account of the administration of the estate

Question 3

When a grantor makes a gift and sets up a trust that is revocable

Answer 3

the grantor has maintained too much power and control over the assets.

Such a revocable trust must be included in the grantor’s gross estate when the grantor dies

Question 4

The estate is allowed a deduction for state death taxes paid although

Answer 4

Federal income taxes and federal estate tax are not deductible by the estate. State income taxes paid prior to the date of death would not be deductible by the estate but would be deducted on the decedent’s final tax return