Your client, age 65, has a gross estate valued at $300,000. His wife, age 58, has a gross estate valued at $150,000 and is financially competent. His objectives are to: leave all property to his wife in as simple a manner as possible; allow his wife to determine the ultimate beneficiaries of all his property; and make maximum use of the unlimited marital deduction. Which one of the following transfers is most appropriate for achieving the client's objectives? A)An estate trust with his wife as beneficiary B)Life income to his wife from a trust funded with the exemption equivalent amount, with the remainder to his designated beneficiaries C)A combination qualified terminable interest property (QTIP) trust and family bypass trust with his wife as income beneficiary D)An outright bequest of the entire estate to his wife
Your client, age 65, has a gross estate valued at $300,000. His wife, age 58, has a gross estate valued at $150,000 and is financially competent. His objectives are to: leave all property to his wife in as simple a manner as possible; allow his wife to determine the ultimate beneficiaries of all his property; and make maximum use of the unlimited marital deduction. Which one of the following transfers is most appropriate for achieving the client's objectives? A)An estate trust with his wife as beneficiary B)Life income to his wife from a trust funded with the exemption equivalent amount, with the remainder to his designated beneficiaries C)A combination qualified terminable interest property (QTIP) trust and family bypass trust with his wife as income beneficiary D)An outright bequest of the entire estate to his wife
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 32P
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Question
Your client, age 65, has a gross estate valued at $300,000. His wife, age 58, has a gross estate valued at $150,000 and is financially competent.
His objectives are to:
- leave all property to his wife in as simple a manner as possible;
- allow his wife to determine the ultimate beneficiaries of all his property; and
- make maximum use of the unlimited marital deduction.
Which one of the following transfers is most appropriate for achieving the client's objectives?
A)An estate trust with his wife as beneficiary
B)Life income to his wife from a trust funded with the exemption equivalent amount, with the remainder to his designated beneficiaries
C)A combination qualified terminable interest property (QTIP) trust and family bypass trust with his wife as income beneficiary
D)An outright bequest of the entire estate to his wife
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