Assess the effect of an irrevocable trust on the gift tax and future estate taxes.
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- Assess the effect of an irrevocable trust on the gift tax and future estate taxes.
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- Discuss the ethical implications of the estate, inheritance, and gift taxes.What is an estate tax and donor tax? Give example how to compute estate and donor taxes.Comment on the following items relative to tax planning strategies of a fiduciary entity. A. To reduce taxes for a typical family, should income be shifted to a trust or from a trust? Why? B. To reduce overall taxes, should a high-income, wealthy beneficiary be assigned to the first or second tier of trust distributions? Why?
- Comment on the following items relative to tax planning strategies of a fiduciary entity. To reduce taxes for a typical family, should income be shifted to a trust or from a trust? Why? To reduce overall taxes, should a high-income, wealthy beneficiary be assigned to the first or second tier of trust distributions? Why?Planning for estate taxes should address: a. Taking actions to benefit from a loss in property values. b. Making gifts during one’s lifetime. c. Utilization of charitable contributions. d. All of the above.Describe the usefulness of a discretionary intervivos trust when used as part of an estate freeze.
- In estate planning, setting ul a trust account in the name of beneficiaries may help to _______ a. Improve the faith of the beneficiaries b. Maximise the estate tax obligation c. Protect the beneficiaries against future inflation d. Protect the beneficiaries from the creditors of the donorHow do taxpayers determine whether they should deduct their itemized deductions or utilize the standard deduction? Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets (assuming equal before-tax rates of return)?How would you compare the income taxation of estates from the income taxation of trusts?
