A same as a but the remainder goes to ws estate b h

H left W a life estate in his stock portfolio, remainder to the children. a.
Same as (a) but the remainder goes to W’s estate. b.
H left securities in a trust fund, income to be accumulated for W’s life, then turned over, together with c.
corpus, to W’s estate.
H left his hunting lodge to his brother J for life, remainder to W. d.
H left $200,000 to W to buy herself a home, “unless she wants to keep the one she has now.” e.
H instructed the executor to use $500,000 of his estate to purchase a single life annuity for W. f.
H sold a remainder interest in his sculpture collection to his son, L, for its fair market value. Upon H’s g.
death, his unexpired term interest of four years was left to W.

701 Testbank
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When Mona Manse died she left $4 million in trust. Her husband, Clarence, is to receive all income from 67.
the trust for his life, payable annually, but has no powers whatever over the trust. Upon Clarence’s death
the remainder is to be split among their children per stirpes.
What are the estate tax consequences to Mona’s and Clarence’s estates if no QTIP election is made? a.
Same as (a), but the QTIP election is made? b.
Same as (b), but the remainder goes to charity? c.
Herman Well’s will left $3 million of stocks in trust. His son, Willie, was to receive all dividends for life, 68.
whereupon the trust fund is to be turned over to the Last Chance Adult University. In addition, Willie is
authorized to withdraw whatever he needs to “keep him happy.”
What are the tax consequences to Herman’s and Willie’s estates if Willie dies 27 years later? a.
Same as (a), but Willie dies 5 months after his father without having touched the principal. b.
Beth Bergman set up an inter vivos trust, retaining the income for life, remainder to charity. The value of 69.
the income interest was $400,000 for tax purposes, the value of the remainder $600,000. Several years later
Beth died when the trust fund was worth $3 million.
What are the income, gift, and estate tax consequences of the above, assuming the trust quali fi es as a a.
charitable remainder unitrust?
Same as (a), but the trust does not qualify as a charitable remainder trust? b.
The following facts pertain to Josh Langerman, recently deceased. Indicate which items would be 70.
includible in his gross estate, his probate estate, or both.
17 years earlier Josh had set up and funded a trust with income to himself for life, if he should need a.
it (he never touched a penny), otherwise to his son, Jake for life (he survives), remainder to his
grandchildren per stirpes.
Josh owned his home in a tenancy by the entirety with his wife, Esmeralda. b.
Josh owned a policy on his life, but the bene fi ciary was irrevocably named Jean, his daughter. c.
Josh owned 40 percent of a farm as tenant in common with his brother James, who owns the other 60 d.
percent.
Josh was vested in a noncontributory, quali fi ed pro fi t-sharing plan with the trust in (a) as bene fi ciary. e.
Two years after Josh died, his estate won a judgment of a substantial sum in a wrongful death action f.
against the clergyman who ran him over one Sunday night, causing his untimely demise.
Chapter 17