When Jacob Kohler died unmarried in 2015, he left an estate valued at $7,900,000. His trust directed distribution as follows: $20,000 to the local hospital, $170,000 to his alma mater, and the remainder to his three adult children. Death-related costs and expenses were $15,800 for funeral expenses, $50,000 paid to attorneys, $3,500 paid to accountants, and $35,000 paid to the trustee of his living trust. In addition, there were debts of $80,000. Use Exhibit 15.7 and Exhibit 15.8 to calculate the federal estate tax due on his estate. Round your answer to the nearest whole dollar.

When Jacob Kohler died unmarried in 2015, he left an estate valued at 7,900,000. His trust directed distribution as follows: $19,000 to the local hospital, $150,000 to his alma mater, and the remainder to his 3 children. Death-related costs and expenses were $15,100 for funeral, $30,000 paid to attorneys, $6,500 paid to accountants, and $35,000 paid to the trustee of his living trust. In addition, debts of $115,000. Calculate the federal estate tax due on his estate.

Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a severe disability as a child and was financially and physically dependent on Hana his entire life. Hana opened an RDSP for Kwan nine years ago and contributed a total of $27,000 to the account. Hana's contributions attracted total Canada Disability Savings Grants (CDSG) of $6,000. The RDSP had a balance of $42,000 when Kwan died. What is the tax impact resulting from Kwan's death? Question 20 options: Kwan's estate will receive taxable income of $9,000 and non-taxable income of $ 27,000. Kwan's estate will receive taxable income of $15,000 and Hana will receive non-taxable income of $27,000. Kwan's estate will receive taxable income of $27,000 and non-taxable income of $15,000.

Cora, 79, has an estate that includes her personal residence valued at $120,000 and $18,000 in a bank account that is solely in her name. She would like to arrange her estate so that she maintains exclusive control of the assets during her lifetime, but at her death the assets will pass to her friend, Mabel, outside of probate. Based on Cora's goals and situation, which of the following are correct statements about will substitutes that she could use? She should put her bank account in tenancy in common with Mabel. She should title her personal residence in joint tenancy with her friend, Mabel. She should execute a will that names her friend, Mabel, as the legatee of the bank account and the devisee of the personal residence. She should place the bank funds in a payable on death (POD) account with Mabel as beneficiary. She should change the title on her personal residence to indicate a life estate reserved for her lifetime and a remainder to her friend, Mabel.   A)IV and V…

Norma, a widow, has made lifetime gifts to her two grandchildren in an effort to reduce the size of her gross estate. In 2012, Norma made a $100,000 taxable gift. She made another $150,000 taxable gift in 2014. She used her gift tax applicable credit amount to offset any gift tax liability for all gifts. What amount of gift tax applicable credit remains available to Norma in 2022?   A)$4,641,000   B)$70,800   C)$4,656,000   D)$4,699,000

Bob died with a gross estate of $4,500,000, half of which is attributable to the value of stock in Graystone Inc., a closely held corporation. Bob owns 80% of Graystone Inc. He had no debts, and his estate administrative expenses were $50,000, of which $10,000 constitutes the personal representative's statutory fee. His will named his wife, Pearl, as the sole beneficiary of his estate and as his personal representative. Bob made no lifetime taxable gifts. Which of the following postmortem techniques are available and advisable for Bob's estate or its sole beneficiary, Pearl? Election of Section 6166 payment of estate taxes Use of the alternate valuation date Waiver by Pearl of the right to her statutory fee as personal representative Election of a Section 303 stock redemption     A) III and IV     B) II only     C) I and II     D) I, III, and IV

This year Carla received corporate stock worth $35,000 as a gift from her grandfather. Her grandfather originally had purchased the stock in 2012 at a cost of $20,000. No gift taxes were paid on the transfer. Three months after receiving the stock. Carla sold it for $32,000. What are the amount and character of gain or loss recognized by Carla on this transaction?

To whom is the income allocated, why, and how much: When Worf’s parent’s died, the made him the beneficiary of a trust which holds real estate as well as income producing assets. Worf distributes one of the rental properties to Alexander outright. Alexander collects the rent from the tenants and manages the properties. In 2011, his revenue less his costs was 50K, and in 2010 his revenue less his costs was 32K.

Munabhai

Linda Smith paid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a face value of $40,000. At age 60, Linda decides to collect the face value of the policy. In the year of collection, how much will Linda include in her taxable income?