A516 - Chap 3 2. a. Survivor statute survivor had an...

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Chap 3 2. a. Survivor statute – survivor had an interest -decedent considered injured party. English Lord Campbell Statute –recovery based on the loss to the survivors, so not included in estate. 2. b. No statues in operation. He was alive so all damages are going to be included in his estate. 3. a. Nothing for the credit trust because she had a temporary interest that ceased at death. She had no power of the credit trust. Wife can appoint assets in the marital trust so this trust would be included in her estate. 3. b. Had he given the assets outright to wife he would definitely get the 1m deduction. No marital deduction though for him unless the assets would be included in the spouses estate. Assets in marital trust would qualify for marital deduction because assets will be included in her gross estate. Assets in credit trust would not qualify for marital deduction because the assets would not be included in her gross estate so husband gets no marital deduction. Extra comment: Why do we leave assets in trust not giving them to spouse outright? Because we don’t want the spouse to give them to the next spouse. 4.a. FMV at date of death. 4.b. 12k retail price 4.c. if item is sold within a reasonable time after death it is assumed that that would be the FMV. So answer is 11k. 5. 15k the cash surrender value. Who knows where proceeds will end up. At time of death he had an interest. The unexpired premium amount would be included as well as the life insurance. Had policy been included on him the whole 50k of policy would have been included. 6. pv of remainder interest in included in his estate. 500,000*table rate at 10% when she is 55 which is .12037 = 84259
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7. blockage rule is 8.Make several gifts. Have a valuation done. 9.a.
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9.b. 10.a. True 10.b.True 10.c. False If your going to use life ins to fund it u need # partners say 4 then you would need 4*(4-1)=12 10.d. False. Real problem for only redemption agreements 10.e. False 11.a. 9/30 Elect to value property earlier of 6 mo after date of death or date of disposition. Done in case value of property has significantly decline which would make it difficult to pay estate taxes on such a high value when prop would be sold for so little and you would have no cash to pay the high taxes. 11.b. No. Only can elect if it reduces tax liab and value of prop. 12 38k. what about the home with jtwros? Irs says you have made a dist/trsfr at date of death so alt val date would be date of death. unless the estate is to be paid with the money from sale of the jtwros prop then it’s not cons disp of at death. 13 14
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17 and 18 19.a. No, ck tests 1) ok- U.S. prop, ok-20% in estate, ok-less than 45 partners, and xx. But look back rule is not met because over the past 15 yrs he did not materially participate. Not sure if it was willed to heirs or not. 19.b.
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This note was uploaded on 06/23/2009 for the course BUPA 516 taught by Professor Kulsrud during the Spring '09 term at IUPUI.

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A516 - Chap 3 2. a. Survivor statute survivor had an...

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