1. One of the objectives of family tax planning is to minimize income taxes on transfers of property within the family unit.
2. In arriving at the valuation of assets for estate tax purposes, the location of the property must be considered.
3. At the time of his death, Rex owned an RV. For valuation purposes, the RV should be included in his gross estate at the price a dealer in RVs would pay for the property.
4. If a decedent’s household goods are sold through public auction, the price received should be the valuation used for Federal estate tax purposes.
5. Doug inherited his mother’s bedroom furniture worth $3,000. For sentimental reasons, Martha, the daughter, pays Doug $3,500 for the furniture. The furniture should be included in the mother’s gross estate at $3,500.
6. At the time of his death, Fred held some notes receivable for loans he made to his two daughters and the payment of which he forgives in his will. The amount to be included in Fred’s gross estate as to these notes is not affected by his forgiveness.
7. Commercial annuity contracts should be valued using the tables issued by the IRS.