Estate (Review Everyday)

Question 1

Imputed Interest

Answer 1

$0-$10,000 -> $0

$10,001 -> $100,000 -> LESSER of
- net investment income or interest calculated using AFR less interest calculated using the state rate of the loan
(if borrower’s net investment income is $100,000 interest calculated using AFR less interest calculated using stated rate of the loan

Question 2

Gift Strategies

Answer 2

• gifts of appreciated property
• gifts to spouse
• gifts to minor (UGMA/UTMA) – cash, securities, life insurance, and annuities
• single party gift strategies (gift appreciated asset the most - to remove from gross estate)
• multi party gift strategies

Question 3

What is the Terminable Interest Rule

Answer 3

1. 6 month survival contingency (can’t be more than 6 months)
2. Terminable interest where spouse has general power of appointment (A Trust)
3. QTIP Trust (C Trust)
4. CRT where spouse is the only noncharitable beneficiary

Question 4

what is a A and T Trust

Answer 4

Marital trust

qualify for umd

Question 5

income in respect of a decedent (who pays the income tax? if there is any?)

Answer 5

asset is included in the gross estate of the decedent but NO STEP UP in basis

income tax must be paid by the recipient