Chart - ABC A as trustee Independent Trustee Estate Tax...

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A → B → C A → B → B A as trustee Independent Trustee As as trustee Independen Gift Tax Consequence Estate Tax Consequence Nothing Gift Tax consequence Estate Tax consequence Gift Tax Consequence Estate Tax Consequence Gift Tax consequence Can accumulate income Not a completed gift to B. Remainder is a completed gift to C, but not a present one. 2036(a)(2) is affected because you affect who possesses the income when. 2038 is affected because you can revoke or alter the income interest to B. Service would used 2036 to get at the whole property. Completed gift because it doesn’t matter who it's to. Nothing is triggred under the string provisions. This is a completed gift to B for for the entire value. Both 2036(a)(2) and 2038 apply since he can affect the time and manner of enjoyment. Completed gift to B for the entire value. Can accerlate income It is a completed gift to B. However, it is not a completed gift to C because A has control over the remainder. Only 2038 applies as 2036 only applies to power over income interests. And the only part that is pulled in is the remainder. It is a completed gift to B and C since A has given up control. It is a completed gift to B. 2038 applies to the remainder. A power to simply accerlerate the the time of enjoyment of the trust property is a taxable power of termination. It is a completed gift to B and C.
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Provisions What is it? What triggers it? How much is it? Except 2035 2036(a). 2036(b) Goes back to 2036(a)(1) Pulls in death bed giving, basically anything given within 3 years of death. Triggered by 2036, 2037, 2038, and 2042. If it would have been pulled in by one of these @ death, and transferred within 3 years, it comes back in. Amount pulled in = gfit tax paid (gross up rule) + value at death according to applicable string provision 1. Sales for full consideration in m worth. . 2. If it's le subtract out the (a)(1) pulls in money when you retained possession (life estate), enjoyment, or right to income over a sum of property. (a)(1). 1) Transfer by D, 2) De retains a suspect interest (right to enjoymnet, income, or designate under (a)(2). 3) Retained for a suspect period (life, period not ascertainable w/o reference to D's death, or a period not ending in fact before D's death. 4) No full and adequate consideration. Full amount or the proportion of the trust you have a retained interest over. If grantor retains right to income for HEMS, only the proportion necessary to produce that amount is included. 1. If you have HE else, it doesn't aff you have an oblig them. 2. Recip person who gifts th the trust that bene included. Ex - O ($400k), and L to made the bigger dies his whole thin L made the smalle 4/5 of whatever i point). you pull benefits When the decedent transfers shares of voting stock 1)
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This note was uploaded on 04/12/2008 for the course LAW 650 taught by Professor Fleischer during the Spring '07 term at University of Illinois at Urbana–Champaign.

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Chart - ABC A as trustee Independent Trustee Estate Tax...

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