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- Question #35 of 85 Question ID: 1251806 Your client, age 65, has a gross estate valued at $7,000,000, which includes life insurance on his life with a death benefit of $750,000 and payable to his wife, age 35, as the named beneficiary. His primary objectives are: To minimize estate taxes on his death To be assured that his son from a previous marriage receives part of the life insurance proceeds To minimize the income tax burden on his beneficiaries The insurance technique that is most appropriate to enable your client to achieve all of his objectives is to have the death benefit A) left with the insurer to be paid to his wife under an interest-only option. B) paid to a trust that gives his wife a general power of appointment over the funds. C) paid to a QTIP trust that restricts his wife’s right to the corpus and which gives the remainder to his son. D) paid to his wife under a fixed-income option for the duration of her life.QUESTION 30 grandmother. The grandmother did not have any gift taxes due. Two years later. John sold the building for S40,000. What was his gain or (losa) on this transaction O $15,000 Gain O $2,500 Loss O $15,000 Loss O $2,500 Gain O No Gain or LossInterview Notes • Herb and Alice are married and file a joint return. Herb is 74 years old and Alice turns 72 in February 2023. Neither are blind. • Both Herb and Alice are retired. Herb works part time as a greeter. • Alice is confused about the Required Minimum Distribution rules, and wants to know when she should take her first distribution from her IRA. • Herb earned $12,000 in wages and has fully taxable pension income of $4,800. The couple also received Social Security benefits of $46,000. They received no other income in 2023. • Herb and Alice's grandson, Stuart, lives with them while he attends the local university. Stuart is 20, a full-time student, and is claimed as a dependent by his parents. • Herb, Alice and Stuart are U.S. citizens, lived in the United States all year, and have valid Social Security numbers. 2. When does Alice need to take her first Required Minimum Distribution (RMD)? a. By April 1 of the year after the year she turned 70 ½. b. By April 1 of the…
- LO2 Fatima inherits a rental property with a fair market value of 90,000 from her aunt on April 30. On May 15, the executor of the estate sends her a check for 7,000. A letter accompanying the check states that the 7,000 comes from the rent received on the property since her aunts death. Fatima receives 6,600 in rent on the property during the remainder of the year and pays allow able expenses of 4,200 on the property. How much gross income does Fatima have from these transactions?Question #59 of 85 Question ID: 1251855 Your client is terminally ill. Her potential gross estate, valued at $12.9 million, includes the following assets: A life insurance policy on her life, with a death benefit of $500,000; her deceased husband is the named beneficiary A general power of appointment (valued at $500,000) over the assets of a trust established by her husband; her children are the designated remaindermen of the trust A $500,000 retained life estate in the family residence Your client also expects to receive a $500,000 bequest within the next four months from her deceased sister's estate; the client's children are the contingent beneficiaries of the bequest. Your client would like to transfer a portion of her estate to her two children while she is alive to reduce her potential estate tax liability to the greatest extent possible. Which one of the following exclusion techniques would be the most appropriate to reduce the value of your client's potential gross…f1 Bat Man is 54 years old and married with 2 children. He is fully employed and earned a salary of R1 450 000 for the current year of assessment. He also made contributions to a medical aid fund of R35 000 and his employer also contributed a further R25 000. YOU ARE REQUIRED to determine Bat's taxable income for the current year of assessment. Select one: a. R1 450 000 b. R1 475 000 C. R1 510 000 d. R1 485 000
- Bernie is a former executive who is retired. This year Bernie received $192,500 in pension payments and $19,600 of social security payments. What amount must Bernie include in his gross income? Multiple Choice 1. $192,500. 2. $202,300. 3. $209,160. 4. $212,100. 5. Zero.Question 27 of 50. Mark and Carrie are married, and they will file a joint return. They both work full-time, and their 2021 income totaled $89,000, all from wages. They have one dependent child, Aubrey (5). During the year, they spent $9,000 for Aubrey's child care. Neither Mark nor Carrie received any dependent care benefits from their employer. What amount may they use to calculate the Child and Dependent Care Credit? $0 $3,000 $8,000 $9,000 Mark for follow upQuestion #61 of 85 Leon has a gross estate estimated at $14.3 million. He is not married but does have two adult children who he wants to receive all of his estate. Leon is the sole owner of income-producing real estate valued at $900,000. He currently depends on the income produced by this real estate to maintain his standard of living. However, Leon is certain that when he retires in 10 years, at age 65, he will no longer need this income due to a generous income from a defined benefit retirement plan. Leon's financial planner has told Leon that his estate could face a severe liquidity crisis if in retirement. In which one of the following trusts would it be best for Leon to place his income-producing property in order to improve his estate's liquidity position in retirement? A) An irrevocable charitable lead trust to last for 10 years that will pay the remainder to his children B) An irrevocable trust to last for 10 years that will pay Leon a fixed percentage of the…
- Saved Kelly and Eric has been married for 40 years and have each contributed to CPP for 40 years. Kelly is entitled to a CPP retirement pension of $640/mo and Eric receives $1000/mo. What would each receive if they chose to 'assign' their pensions? Question 32 options: Kelly $820, Eric $820 Kelly $775, Eric $865 Kelly $784, Eric $856 Kelly $640, Eric $100036. One year prior to his death, Bobby lends his son $250,000 at a 10% interest rate per year to purchase land. As part of the promissory note, the promissory note will cancel upon Bobby's death. At the time of death no payments were made and Bobby did not seek payment from his son. Assuming this is John's only asset, what is the value of his gross estate? a. $0 b. $25,000 c. $250,000 d. $275,000Interview Notes Herb and Alice are married and file a joint return. Herb is 74 years old and Alice turns 72 in February 2023. Neither are blind. • • . Alice is confused about the Required Minimum Distribution rules, and wants to know when she should take her first distribution from her IRA. Both Herb and Alice are retired. Herb works part time as a greeter. • Herb earned $12,000 in wages and has fully taxable pension income of $4,800. The couple also received Social Security benefits of $46,000. They received no other income in 2023. Herb and Alice's grandson, Stuart, lives with them while he attends the local university. Stuart is 20, a full-time student, and is claimed as a dependent by his parents. . Herb, Alice and Stuart are U.S. citizens, lived in the United States all year, and have valid Social Security numbers. 1. What is Herb and Alice's standard deduction? a. $27,700 Ob. $29,200 c. $29,550 d. $30,700