$10,000 in net premiums for his universal life insurance policy and took a withdrawal of S4, 000 when the policy's cash value was $11,000. Assuming Bob had never previously taken a cash value withdrawal and the policy is not a modified endowm

In 2019, Barry creates an irrevocable trust for the benefit of his children and grandchildren with $400,000 of assets. Barry allocates $400,000 of his GST Exemption to this trust when filing Form 709. If the trust appreciates to $1,000,000 in 2022, and a distribution of trust income is made to one grandchild, what are the GST implications of this situation?

Liz had AGI of $130,000 in 2020. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2020. What is the amount of Liz’s deduction assuming that she purchased the stock on December 3, 2019, and the stock had a fair market value of $17,000 when she made the donation? Assume the same facts as in part (a), except that Liz purchased the stock on July 1, 2017. Assume the same facts as in part (a), except that the stock had a fair market value of $7,500 (rather than $17,000) when Liz donated it to the charity.

Walter owns a whole-life insurance policy worth $55,800 that directs the insurance company to pay the beneficiary $251,000 on Walter's death. Walter pays the annual premiums and has the power to designate the beneficiary of the policy (it is currently his son, James). Required: What value of the policy, if any, will be included in Walter's estate upon his death? Value of policy

S3.

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Abel's employer provides Abel with a group life insurance benefit. Abel irrevocably transferred the group life insurance policy and all of the attendant incidents of ownership to his brother, Cain. Cain changed the beneficiary on the policy to himself. The $50,000 policy was paid to Cain upon Abel's death. How much is includible in Abel's gross estate?

Lamar owns a whole life insurance policy in which he is the insured and his children are the primary beneficiaries. In five more years, the policy will be paid up. Lamar would like to minimize the transfer tax on this asset for both his and his wife's estates. He also would like to avoid any income taxation under the grantor trust rules. Which one of the following estate planning techniques would best achieve Lamar's goals?     A) Assigning both the policy and income-producing assets to a funded irrevocable trust either immediately or five years from now; earnings from the trust assets could be used by the trustee to pay the premiums     B) Waiting until the policy is paid up in five years and then transferring ownership of the policy to an unfunded irrevocable life insurance trust     C) Immediately transferring ownership of the policy to a revocable life insurance trust and gifting the annual premiums to the trustee     D) Immediately assigning the policy to an unfunded…

Ashvinn

If the executor needs to pay a debt at the time of a decedent's death, which of the following options will cost the least?     Use the decedent's cash     Sell something     Borrow money     Special IRS extension provisions     Life insurance   If your estate has to pay an estate tax, what is the tax rate?     40% of the unified credit.     40% of the equivalent exemption.     The amount of the unified credit in the year of death     40%.