Exam 27: Family Tax Planning

Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Cash dividends on stock owned by the decedent (declaration and record dates preceded death but payment date was after death).

Classify each statement appropriately. a.Deductible from the gross estate in arriving at the taxable estate.b.Not deductible from the gross estate in arriving at the taxable estate. -Payment by the estate of church pledge made by decedent prior to death.

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 2015,Hal dies first when the land is worth $3,000,000.As to the land,Hal's gross estate must include:

Classify each statement appropriately. a.Deductible from the gross estate in arriving at the taxable estate.b.Not deductible from the gross estate in arriving at the taxable estate. -Casualty loss to property before the death of the owner.

Daniel's will provides that all of his property passes to a trust,life estate to his wife,remainder to charity.If Daniel's executor makes a QTIP election,the use of the marital deduction date is not possible.

Matt and Patricia are husband and wife and live in Oregon.In 1980 and using her funds,Patricia purchases a residence for $400,000,listing title to the property as "Matt and Patricia,joint tenants with right of survivorship." In 2015,Matt dies first when the residence is worth $2 million.A correct statement as to these transactions is:

Death does not defeat a deceased spouse's interest in a tenancy by the entirety.

Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Decedent holds a life estate in a trust created by her spouse who died five years ago.The executor of the spouse's estate made a QTIP election as to the trust.Decedent's son is the remainderman of the trust.