our elderly client's husband died last month with a gross estate valued at $4,000,000, which includes closely held stock valued at $1,000,000. Debts and expenses (including state death taxes paid) for his estate are estimated to be $50,000. His will, which appoints his brother executor, leaves one-half of his estate to your client, with the remainder to their two adult children in equal shares. Your client recently inherited $7,000,000 from the settlement of her mother's estate. If your client's major objectives are to (1) avoid inclusion of her husband's property in her gross estate, and (2) pass as much of his property as possible to their children, which one of the following is an available and advisable postmortem planning technique? A) A qualified disclaimer B) an election against the will by the wife C) A Section 303 stock redemtion D) A QTIP election by the wife
QUESTION 64
Your elderly client's husband died last month with a gross estate valued at $4,000,000, which includes closely held stock valued at $1,000,000. Debts and expenses (including state death taxes paid) for his estate are estimated to be $50,000. His will, which appoints his brother executor, leaves one-half of his estate to your client, with the remainder to their two adult children in equal shares. Your client recently inherited $7,000,000 from the settlement of her mother's estate.
If your client's major objectives are to (1) avoid inclusion of her husband's property in her gross estate, and (2) pass as much of his property as possible to their children, which one of the following is an available and advisable postmortem planning technique?
A) A qualified disclaimer
B) an election against the will by the wife
C) A Section 303 stock redemtion
D) A QTIP election by the wife
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