Winston and Ginger are husband and wife and have always lived in Texas At the

Winston and ginger are husband and wife and have

  • College of San Mateo
  • ACCT 2200
  • Notes
  • PresidentHackerMonkey9882
  • 51
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32.Winston and Ginger are husband and wife and have always lived in Texas. At the time of Winston’s prior death, he was insured in the amount of $1,000,000. The policy was taken out after their marriage, and premiums were paid 50% from community funds and 50% from Winston’s separate property. The designated beneficiary of the policy is Harry, Ginger’s son by a prior marriage. As to the policy proceeds:a.$500,000 is included in Winston’s gross estate, and Ginger has made a gift to Harry of $500,000.b.$750,000 is included in Winston’s gross estate, and Ginger has made a gift to Harry of $250,000.c.$1,000,000 is included in Winston’s gross estate. d.$750,000 is included in Winston’s gross estate.e.None of the above.ANS: AUnder the inception of title rule applicable in Texas, the policy is community property because it was taken out after marriage. In this regard, the source of the insurance premium payments (i.e., from community or separate funds) makes no difference.PTS:1DIF:1REF:p. 27-24 | p. 27-25OBJ:6NAT:AICPA FN-Measurement | AACSB AnalyticMSC:5 min33.Homer and Laura are husband and wife. At the time of Homer’s prior death, 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). Laura also owns an insurance policy on Homer’s life (maturity value of $1,000,000) with herself as the designated beneficiary. Homer’s will passes all his property to Laura. How much marital deduction is allowed Homer’s estate?
PTS:1DIF:2REF:Example 41 | Example 50OBJ:7NAT:AICPA FN-Measurement | AACSB AnalyticMSC:5 min34.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 2009 when the trust is worth $2,000,000. Which, if any, of the following is a correct statement?PTS:1DIF:2REF:p. 27-29 | p. 27-30 | Example 56OBJ:6 | 7NAT:AICPA FN-Measurement | AACSB AnalyticMSC:5 min

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