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

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Ms. Prince wants to create a scholarship in honor of her parents at the law school from which she received her degree. She could endow the scholarship with $500,000 cash or with $500,000 worth of marketable securities with a cost basis of $318,000. Assume the taxable year is 2023. Required: If her AGI is $3.8 million, compute the after-tax cost of the two endowment options. Use Individual Tax Rate Schedules and Tax rates for capital gains and qualified dividends. Note: Enter your answers in dollars not in millions of dollars. After-tax cost Cash Securities

22. Troy and Anne have the following in their combined estate. Assume that in 2008, Troy to set up the standard A/B marital deduction/bypass trust arrangement for himself. If Troy dies in 2021, which of the following would be correct (Assume No Deductible Expenses or Prior Gifts)? Troy separate property Anne separate property Community property $16,900,000 $700,000 $1,600,000 A Trust Receives B Trust Receives $ 6,000,000 $11,700,000 $ - 0- $13,074,200 А. В. $11,700,000 $ 6,000,000 $17,700,000 $4,625,800 C. D. In 2021, Richard gave gifts of $30,000 each to his church, his wife, his son, and his mother. Richard also created and funded a QTIP trust for his wife with $200,000 in which his daughter was to receive the remainder interest upon the death of the wife. A QTIP election will be made on Richard's gift tax return. What is the total value of the annual exclusions used by Richard? 23. А. $30,000 $45,000 $60,000 $90,000 None of the above. В. C. D. Е. 24. All the following items will be…

Upon Jena’s retirement, the couple plans to relocate their home close to the beach. For this purpose, they intend to buy a house near the beach and a rental property (to fund their retirement). They do not have the funds to make these purchases. Please explain to the couple the downsizing retirement strategy most appropriate to their circumstance.

Joyce is a widowed taxpayer whose husband Willard passed away on March 31, 2020. Joyce and Willard had purchased a home for $215,000 on September 12, 2004, lived in the home as their main home until Willard's death. Joyce moved in with her daughter after Willard's death, and sold the home on November 30, 2020 , for $595,000. How much of the gain on the sale can Joyce exclude from taxable income? Select one: O a. $500,000, the maximum exclusion for an unmarried surviving spouse O b. $380,000, the amount of gain on the sale of the home O C. $250,000, the maximum exclusion amount for a single taxpayer O d. $0, because she moved out before she sold the home

Just prior to a major medical procedure, Cody gives his son, Liam, stock in Robin Corporation (fair market value of $1,624,200 and basis of $2,273,880). At the time of the gift, Cody held some unused capital losses. The surgery is unsuccessful, and after Cody's death, Liam sells the stock for $2,501,268. Question Content Area a. What is the income tax result for Liam? $fill in the blank c46f48f55fc1018_1 Question Content Area b. What if the gift had not been made and the stock passed to Liam as a bequest from Cody?

Jamal, who lives in a common law state, would like to place his new bride on the deed to a residence that is currently in his own name. His goals regarding this residence and the transfer are: He does not want the transfer to cause him to use any of his gift tax applicable credit amount. He wants to be able to use the annual exclusion for the transfer. He wants the survivor of himself and his wife to receive title to the deceased spouse's interest in the residence. He does not want his wife to be able to convey her interest in the residence without his consent. He does not want more than 50% of the fair market value of the house to be included in his gross estate if he is the first to die. On the death of the first spouse, he does not want the residence to be subject to a probate proceeding. What is the most appropriate way for Jamal to title the residence when he makes the transfer? A) Tenants by the entirety     B) Tenants in common with equal interests     C) Jamal as the…

Susan and Raphael Galego have completed Step 1 of their needs analysis worksheet and determined that they need $3,522,000 to maintain the projected lifestyle of Raphael (age 41) and their two children (ages 7 and 11) in the event of Susan’s (the primary earner’s) death. The Galegos also have certain financial resources available after Susan’s death, however, so their life insurance needs are lower than this amount. If Susan dies, Raphael will be eligible to receive Social Security survivors’ benefits—approximately $3,500 a month ($42,000 a year) until the youngest child graduates from high school in 9 years. After the children leave home, Raphael will be able to work full-time and earn an estimated $52,000 a year (after taxes) until he retires at age 65. After Raphael turns 65, he’ll receive approximately $3,100 a month ($37,200 a year) from his own Social Security and retirement benefits. The life expectancy for a man within Raphael’s demographic is 80. The couple has also saved…

Penny and Mary Hardaway are married and live in Tennessee, a common-law state. For the holidays in 2023 , Mary gave cash gifts of $40,500 to each of her two sons, and Penny gave $40,600to his daughter. What is the amount of Mary's taxable gifts if Penny and Mary opt to gift-split? Multiple Choice $40,500 $70,500 $9,800 $6,500 None of the choices are correct.