Homer and Laura are husband and wife At the time of Homers prior death in 2012

Homer and laura are husband and wife at the time of

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126. Homer and Laura are husband and wife. At the time of Homer’s prior death in 2012, they owned the following: land as tenants by the entirety worth $2,000,000 (purchased by Homer) and stock as equal tenants in common worth $3,000,000 (purchased by Laura). Homer owns an insurance policy on his life (maturity value of $1,000,000) with Laura as the designated beneficiary. Homer’s will passes all his property to Laura. How much marital deduction is allowed Homer’s estate? 127. In 1985, Drew creates a trust with $1,000,000 of securities. Under the terms of the trust, Paula (Drew’s wife) is granted a life estate with remainder to their children. Drew makes a QTIP election as to the trust. Drew dies in 1992 when the trust is worth $1,500,000, and Paula dies in 2013 when the trust is worth $2,000,000. Which, if any, of the following is a correct statement? 128. June made taxable gifts as follows: $400,000 in 1973, $200,000 in 1977, $600,000 in 1985, and $700,000 in 2001. In 2013, June dies leaving a taxable estate of $4,000,000. June’s tax base for applying the unified tax rate schedules (for estate tax purposes) is: 129. Pursuant to Corey’s will, Emma (Corey’s sister) inherits his property. Emma dies later. The estate tax attributable to the inclusion of the property in Corey’s gross estate was $300,000. The estate tax attributable to the inclusion of the property in Emma’s gross estate is $400,000. Emma’s credit for the tax on prior transfers (under § 2013) is:
130. Among the assets included in Taylor’s gross estate are the following.FairMarket ValueDate of DeathSix Months AfterDate of DeathStock in Grebe CorporationStock in Rail CorporationOffice building$7,000,000800,000900,000$6,800,000850,000890,000Three months after Taylor’s death in 2012, her executor sells the Rail stock for $830,000.a.What is the amount of Taylor’s gross estate if date of death value is used?b.What is the amount of Taylor’s gross estate if the alternate valuation date is elected?c.Suppose the accrued rents on the office building are as follows: $80,000 (date of death) and $82,000 (six months after death). How does this change the answers in parts a. and b.?d.Suppose all of Taylor’s assets pass to her surviving spouse. Does this have any impact on the choice of valuation date? Explain.a.$8,700,000. $7,000,000 + $800,000 + $900,000 = $8,700,000.b.$8,520,000. $6,800,000 + $830,000 + $890,000 = $8,520,000.c.Regardless of whether § 2032 is elected, post-death income earned on estate assets is not taken into account. Thus, the income earned up todate of death is the amount included in the gross estate. The answer to part a. is $8,780,000 and part b. is $8,600,000.

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