Estate Planninv

Question 1

Cost basis for a spouse’ inheritance at a Community property state?

Answer 1

100% step-up cost basis

Question 2

Tom and his son JR paid $1m for a vocation home held in JTWROS. Tom put up $750,000, and JR put up $250,000. If Tom does, how much will the IRS try to include in his gross estate?

Answer 2

1m

Unless JR proves his portion
IRS always try to include more

Question 3

Testate

Answer 3

Dying with a valid will

Question 4

Dana was an income beneficiary of a trust set up by her father. She was granted a 5/5 power. At the time Diane’s fealty, the trust was worth $100,000, and she had excercised 5 or 5 tight this year. What amount relating to trust must be include in Dana’s gross estate

Answer 4

Nothing since she exercised the 5 or 5 power

Question 5

Lapse of general power of appointment with no 5 or 5 limitation is likely to trigger federal gift tax