Estate Chapter 3

Question 1

When a joint account is created with a donee, when is it considered a gift?

Answer 1

When the funds are withdrawn not just upon creation of the account

Question 1

Is the annual gift exclusion per recipient or total gifts?

Answer 1

Per recipient

Question 2

If a gift is made of property owned solely by one spouse, and they still want the $36,000 gift tax exclusion for MFJ, what needs to happen?

Answer 2

Gift split; requires spousal permission

Question 3

Can a spouse consent to a gift split if the gift was made earlier in the year before marriage?

Answer 3

No

Question 4

How are transfers of property or property interests made under a written agreement between spouses in settlment of maritla property treated?

Answer 4

Deemed to be for full consideration and therefore are not gifts

Question 5

Charitable contribution deduction for life insurance

Answer 5

Cash value of the policy or the cost of basis whichever is less

further limited to 50% of AGI

Life insurance is an ordinary income type of asset–not a LTCG asset that can be valued at FMV for charitable income tax deduction purposes