Solved by verified expert :2275. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question ES #19
When Travis learns he is seriously ill, he transfers an insurance policy on his
life (maturity value of $2,000,000) to his wife Alexis. The couple’s adult
children are the designated beneficiaries of the policy. Has Travis acted
wisely?
2276. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question ES #20
What is the justification for the terminable interest rule that is applicable
to the marital deduction?
2277. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question ES #21
Doyle died in 2000 and by will created a trust with the following provisions:
“life estate to my wife, Grace, remainder upon her death to our children.”
Grace dies in 2011. Is the trust Doyle created included in Grace’s gross
estate? Explain.
2278. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question ES #22
Generally, property that passes to a surviving spouse that is not a U.S.
citizen does not qualify for the marital deduction.
a.
Why?
b.
How can this result be avoided?
2279. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question ES #23
At the time of her death in an automobile accident, Laura left a modest probate
estate, most of which she had inherited from her mother several years ago.
Comment on Laura’s Federal estate tax position in connection with each of the
following points.
a.
Probate estate versus gross estate.
b.
Credit for the tax on prior transfers.
2280. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question ES #24
When one spouse predeceases the other, the credit for prior transfers does not
apply.
a.
Why?
b.
Under what circumstances might the credit apply?
2281. CHAPTER 18—THE FEDERAL GIFT AND ESTATE
TAXES Question ES #25
How could the § 2513 election to split gifts help avoid the generation-skipping
transfer tax (GSTT)?
