Gift Tax Essay

While grantor trusts are commonly created as part of an estate plan, estate planners may inadvertently be creating income tax issues that trustees and tax preparers must deal with during the administration. When the grantor of a grantor trust dies, or the grantor trust status terminates during the life of the grantor, for the most part the tax consequences are well established. What is unclear is what happens if the grantor trust had an outstanding liability to the grantor at the death of the grantor. This paper addresses the issue and how it may be treated. Part I of this paper will briefly address the history of

30. In 2011, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has made a taxable gift of $37,000.

Dollie M Fincher named Dorsey J Fincher as primary beneficiary and did not name an alternate beneficiary. We have received and reviewed the Order Admitting Copy of Will to Probate as a Muniment of Title and the Last Will and Testament of Dollie Fincher. We are accepting these documents in lieu of a Judgment Declaring Heirship since they confirm the persons eligible for the benefit payable under Section 824.103 of the Texas Government Code of Texas. The Last Will and Testament of Dollie Fincher confirm that Cathy Drobinski, Martha Davis, and Roy Fincher are the persons eligible as the children of Dollie M

In early 2010, Walter Hodges became interested in the real estate market so he initiated his investigation into the real estate market. Mr. Hodges intended to acquire real estate with the intentions for investment or rental. Mr. Hodge has no previous knowledge or exposure to any real estate rental or investment industry. As a result, Mr. Hodges began in Spring 2010 to advertise and expose his business through various promotional avenues such as business cards, flyers, and customer relations.

Section 61(a) specifies that gross income for purposes of calculating such taxable income means “all income from whatever source derived”. Encompassed within this broad pronouncement are all “undeniable accessions to wealth,

I put that I have a net worth of $1,000,000 and a gross estate of $2,000,000 because of the $1 million life insurance policy. For total estate expenses I put $75,000 making my adjusted gross estate roughly 1.9 million dollars. I will be giving all of the 1.9 million to my spouse, meaning that $425,000 will be subject to tax. I understand the importance of a irrevocable trust and would make my children the beneficiaries so they are not taxed on the life insurance

Assuming no other gifts have been previously made, Ann and Bob can use the unified credit toward part of their gift. Ann and Bob can combine their exclusion and give each donee $28M each year. If Ann and Bob give any amount to one individual over $28M in one year, as the donnee, Ann and Bob will be required to file a federal gift tax return. The excess above the annual exclusion results in the donee incurring the gift tax and offsets the life exclusion of $5.34M per donee. If they give each child and grandchild $1MM, that equals $22MM in gifts. Regardless of whether or not Ann and Bob split the gift, they have exceeded the exemption equivalent of $5.43MM per donee. Therefore, the tentative tax is $345,800 plus 40% of the excess over $1MM.

Cory currently has $76,000 (2 x $38,000) of term life insurance through his employer. Consequently, Cory should consider purchasing approximately $293,000 of additional life insurance coverage. Tisha has $69,000 of term insurance through her employer, as well as a whole life policy of $50,000. She should consider purchasing an additional $328,000 of life insurance coverage ($447,065 – $119,000). While Tisha or Cory

Wrongful Death claims can be pursued by the decedent’s surviving spouse, domestic partner, children , and issue of deceased children, or if there is no surviving issue of the decedent, the persons including the surviving spouse or domestic partner who would be entitled to the property of the decedent by intestate succession. There are other potential claimants under certain circumstances so its best to contact an experienced personal injury attorney for further analysis .

Under Sec. 2503, “an annual exclusion is allowed for taxable gifts, the amount of which, as adjusted for inflation, was $14,000 in 2015. However, the annual exclusion is available only for gifts of a present interest in property, which is defined in Regs. Sec. 25.2503-3(b) as "an unrestricted right to the immediate use, possession, or enjoyment of property or the income from property." Also, per the regulations, no part of the value of a gift of a future interest may be excluded from taxable

Normally, the “Will” validly applies to Alvin’s both personal and real property in creating a testamentary trust which takes effect after his death. Unless otherwise, the state may consider other successor executor such as family members or a disinterested

and she receives reasonable dividends annually. She has substantial cash balances in cashable GIC for $412,920 with the interest of 1.9% annually and in her chequing account she has $141,067 without interest. She also has medical and life

Spouse A and Spouse B made a profit of $296,000 on the sale of their home. Stated in Section 121 if the profit is under the allowed amount of $500,000 the clients are allowed to omit it from their income, and do not have to pay capital gains on the home. They are also eligible to exempt the profit of their home, because they resided in the home for more than two years out of the last five, and they have not sold a property before, and they owned the house for over two years, and lastly they omitted the gains on their tax return.

Here, Daphne had a life insurance policy for $200,000. Typically a life insurance policy does not have to go through probate, however since Daphne has designated the policy payable to her estate instead of an actual person, the life insurance policy must go through probate. Daphne’s retirement account is payable a Pay-On-Death because it is a retirement account and is nonprobate property. Daphne’s checking account is also Pay-On-Death to her great-granddaughter and is nonprobate property. The title to Daphne’s house and all of Daphne’s furnishings and jewelry are probate property. The house is probate property because none of her great grandchildren are joint tenants.

Under the proposal his wife would be provided with twenty million dollars, taxes would be paid for, so this was a real twenty million dollars. The twenty million would be placed in an account which would pay 4%, or $800,000 a year to his wife for her entire life. On her passing their three children would equally divide the $800,000 annually. This would go on as a trust fund for his grandchildren and their children.