1.John transfers $4,000,000 to a revocable trust. Upon Johns death, the trust becomes
irrevocable. John is the trustee during his lifetime and Johns wife, Chrissy, is the trustee
upon Johns death. Upon Johns death the Trust pays all of its income to Johns
P1-11: Kendall Jackson is a widower with an estate of $100 million. Kendall has
two sons who have substantial wealth, so they will not benefit appreciably from
an inheritance. Kendall decides to make out his Will giving his entire estate to his
1.How many Powers of Appointment (either being exercised or being granted) can you
locate in his Will? Indicate where they are and what they say.
Definition: Powers of Appointment is a right to direct who will enjoy someone
elses property after the power
1. Why did the IRS disallow Edie Windsor's refund claim?
Because the IRS disallowed Windsors refund claim due to the same
sex couple (Edie Windsor and Thea Spyer) was not viewed as a
legally marriage and spouse in Canada. According to the passage
Question 2 Federal Estate Tax
Faith will be expected to pay federal estate tax, done through filling form 706. The market value
is used, and gross estate accrued. However, certain deductions are available before arriving to the
3.Which of the following constitutes a direct skip for purposes
of the generation skipping tax? To the extent an item is a
direct skip, state the dollar amount of the direct skip.
EXPLAIN IN DETAIL YOUR ANSWERS TO THE FOLLOWING ITEMS:
A gift of $100,00