Prior to her death in 2012 Alma made the following gifts Fair Market Value Year

Prior to her death in 2012 alma made the following

This preview shows page 52 - 55 out of 70 pages.

116. Prior to her death in 2012, Alma made the following gifts.Fair Market ValueYearAssetDate of GiftDate of Death2007Marketable securities$400,000$900,0002010Term life insurance policy–0–100,0002010Unimproved land900,000950,000As a result of the 2010 transfer, Alma paid a gift tax of $70,000. As to these transactions, Alma’s gross estate includes:
117. In 2011, Glen transferred several assets by gift to different persons. Glen dies in 2013. Information regarding the properties given is summarized below.Fair Market ValueDate of GiftDate of DeathInsurance policy on Glen’s life$ 20,000$200,000Unimproved land890,000900,000Stocks and bonds600,000800,000The transfer of the land and the stocks and bonds resulted in a total gift tax of $60,000. As to these transactions, Glen’s gross estate must include:118. At the time of his death, Lance held a life estate in the LM Trust. Under which of the following circumstances will the LM Trust not beincluded in his gross estate? 119. At the time of her death, Megan was involved in the following.·Owned an insurance policy on the life of her father with a replacement cost of $250,000 and maturity value of $800,000. The designated beneficiary of the policy is Megan’s estate.·Was an equal tenant in common with her brother in a tract of land worth $800,000. The land was inherited from their grandmother 10 yearsago when it had a value of $200,000.·Was a joint tenant with her two sisters in stock worth $1,500,000. The stock was inherited from their grandmother 10 years ago when it had a value of $500,000.As to these transactions, Megan’s gross estate must include:
120. In 2005, Mandy and Hal (mother and son) purchased land for $600,000 as joint tenants with right of survivorship. Of the $600,000 purchase price, Mandy provided $300,000 and Hal $300,000 (of which $200,000 had been received as a gift from Mandy). In 2013, Hal dies first when the land is worth $3,000,000. As to the land, Hal’s gross estate must include: 121. In 2005, Thalia purchases land for $900,000 and lists title in the names of her daughters as follows: “Apriland Theresa, joint tenants with right of survivorship.” In 2007, April and Theresa purchase an apartment building for $1 million as equal tenants in common; April furnished $400,000 and Theresa furnished $600,000 of the cost. April dies first in 2013 when the land is worth $1.5 million and the apartment building is worth $2 million. One of the results of these transactions is:

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture