Valentino's will leaves his half of his probate estate to a testamentary trust in which his wife and child are income beneficiaries, and his children the remainder beneficiaries. The will gives the remainder of his probate estate outright to his child. Valentino wanted to be assured that both his wife and children received some part of his estate while incurring minimal estate administration fees. Valentino has a gross estate of $2 million. Since the will was drafted, Valentino has had second thoughts about the way he decided to distribute the assets of his estate. Does Valentino need to consider amending his will? A)Yes, because if his wife predeceases him, her portion of the estate will pass through intestacy at Valentino’s death and be distributed to unintended beneficiaries. B)No, because there will be no estate tax to be paid out of pocket by his estate. C)No, because the spousal elective share given to his wife by state statute will permit her to take all of Valentino’s estate in any event. D)Yes, because the existing will does not include a residuary clause and thus could be subject to the intestacy statutes.
Valentino's will leaves his half of his probate estate to a testamentary trust in which his wife and child are income beneficiaries, and his children the remainder beneficiaries. The will gives the remainder of his probate estate outright to his child. Valentino wanted to be assured that both his wife and children received some part of his estate while incurring minimal estate administration fees. Valentino has a gross estate of $2 million. Since the will was drafted, Valentino has had second thoughts about the way he decided to distribute the assets of his estate. Does Valentino need to consider amending his will? A)Yes, because if his wife predeceases him, her portion of the estate will pass through intestacy at Valentino’s death and be distributed to unintended beneficiaries. B)No, because there will be no estate tax to be paid out of pocket by his estate. C)No, because the spousal elective share given to his wife by state statute will permit her to take all of Valentino’s estate in any event. D)Yes, because the existing will does not include a residuary clause and thus could be subject to the intestacy statutes.
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 28CE
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Question
Valentino's will leaves his half of his probate estate to a testamentary trust in which his wife and child are income beneficiaries, and his children the remainder beneficiaries. The will gives the remainder of his probate estate outright to his child. Valentino wanted to be assured that both his wife and children received some part of his estate while incurring minimal estate administration fees. Valentino has a gross estate of $2 million. Since the will was drafted, Valentino has had second thoughts about the way he decided to distribute the assets of his estate.
Does Valentino need to consider amending his will?
A)Yes, because if his wife predeceases him, her portion of the estate will pass through intestacy at Valentino’s death and be distributed to unintended beneficiaries.
B)No, because there will be no estate tax to be paid out of pocket by his estate.
C)No, because the spousal elective share given to his wife by state statute will permit her to take all of Valentino’s estate in any event.
D)Yes, because the existing will does not include a residuary clause and thus could be subject to the intestacy statutes.
Expert Solution
Step 1: Estate:
It is the amount of tax levied on the property or estate of a deceased person.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT