Explain the Gift and Estate Tax reforms created by EGTRRA 2001.
EGTRRA 2001 eliminated the unified transfer tax system by increasing the applicable
credit amount for transfers at death between 2001 and 2010, while the appl
Explain the theory behind the unlimited marital deduction.
The theory behind the unlimited marital deduction is that a married couple should be
treated as a single economic unit for estate tax purpos
Life Insurance in
List the five most common objectives of using life insurance in an estate plan.
The five most common objectives of using life insurance in an estate plan are as follows:
Protecting the income stre
Define skip person.
A natural person two or more generations younger than the transferor is a skip person. A
trust is a skip person if all interests in the trust are held by skip pe
What factors must an individual consider before making a charitable gift?
A donor needs to consider his charitable objectives and the desired timing of the gift, in
addition to the tax consequences of making a cha
Types of Property
List and define the three major types of property.
Real property - land and buildings;
Tangible property- property that is not realty and may be touched such as cars, clothing, and jewelry; and
Special Elections &
Why is it important for an estate to have cash?
An estate must cover the taxes, administrative expenses, last medical costs, and funeral
costs. All of these expenses must be paid for
List the basic documents used in estate planning.
The basic documents used in estate planning include wills, codicils, side instruction letters, durable powers of attorney for health care or pr
Life & At Death
Explain how an intra-family sale of property can be an advantageous strategy for reducing an individuals gross estate.
An intra-family sale can reduce an individuals gross estate because the sale of
Asset-backed securities (ABS)
Average annualized return
Bond: high-yield corporate
Bond: high-yield municipal
Buy low, sell high
Center for Research in Security Price
18 January 2017
Destroying cars by art
The Porsche 911 is an iconic automobile that all petrol heads love, due to its beautiful display of
art through an automobile. From classic to modern day 911, Porsche has always been
Why are trusts used in estate planning?
Trusts are used in estate planning to provide for the management of assets and flexibility
in the operation of the estate plan.
What is a trust?
A trust is a structure that vests le
List six assets included in a decedents gross estate.
2. Stocks and bonds.
4. Retirement accounts.
5. Notes receivable.
7. Other real estate.
8. Household goods.
The Probate Process
Describe the probate process.
The probate process is a legal proceeding that serves to prove the validity of any existing
will, supervise the orderly distribution of the decedents assets to the heirs, and protec
Introduction to Estate
Define estate planning.
Estate planning is the process of the accumulation, management, conservation, and
transfer of wealth considering legal, tax, and personal objectives.
Explain the estate and