Liquidity Needs Flashcards
1
Q
Liquidity need that can’t be completely eliminated
A
Admin expenses
2
Q
Why would a beneficiary agree to use nonprobate assets to meet liquidity needs
A
- avoid liquidation
- avoid lawsuit
- avoid IRS lien
3
Q
qualified disclaimer
A
- in writing
- irrevocable
4
Q
qualified disclaimer - estate savings for whom?
A
the SURVIVING spouse.
5
Q
2032A Recapture
A
If the property loses its status as “qualified property” within 10 years of filing the return
6
Q
Can PR use nonprobate assets to meet estate liquidity?
A
Yes, they don’t need beneficiary’s approval
7
Q
Downside of gifting during life?
A
losing control of the asset
8
Q
nonexeoneration clause
A
property received with a debt, beneficiary must accept that debt
