At the time of his death in 2014, Howard was married to Bella for over 40 years. Howard and Bella had two adult children (Max and Bertha). Max and Bertha each have their own children (Howard?s grandchildren) When Howard died in 2014, in addition to his $8.5 million of certificates of deposit and investment property worth $4 million, the following facts were disclosed by the executor: a) f) g) h) i) i) In 1975, Howard decided to see what kind of fiduciary the Bank of Georgia would be for his assets. However, he did not want to establish an irrevocable trust because the fiduciary might not perform up to expectations and he might need the property later for his own retirement needs. Consequently, Howard established a revocable trust funded at $300,000, but the fair market value at death was $700,000. The trust terms gave income and principal distributions (in the trustee?s sole discretion) to Howard?s children ? Max and Bertha for their lives. At the death of the second child, the trust then provides for mandatory distributions of income to Howard?s grandchildren for their lives. The trust will terminate after the death of Howard?s last grandchild and all remainder interests are held by Howard?s great grandchildren. At Howard?s death, the trust became irrevocable. At Howard?s death, both Max and Bertha were alive. In 2006, Howard made a taxable gift of $100,000 to his daughter, Bertha. Due to the unified credit, Howard did not incur any gift tax. Prior to 2006, Howard made no taxabl' gifts. In 2007, the revocable trust distributed a total of $1.2 million to Max and Bertha. This was the only distribution made from the revocable trust. In 1983, Howard purchased a paid-up life insurance policy with a face value of $300,000 payable at death to the executor of the estate to use against any estate taxes tha might be due. In 1981, Howard?s mother left him with a power of appointment over a trust valued at $215,000 at the date of death. Howard could exercise the power in favor of himself, but subject to a standard requiring exercise for his own comfort. Howard did not exercise this power and, at his death, the property was transferred to his brother in accordance with the trust documents. Funeral expenses were $30,000 and the estate incurred $70,000 of administration expenses. The executor paid $40,000 in state death taxes to the state of Georgia. There were no other liabilities (Howard believed in using cash), and the will gave the executor no other explicit instructions Howard left his wife, Bella, $600,000 outright in certificates of deposit. The amount distributed to Bella was not to be reduced by any expenses of the estate. The residue of his estate was left to his grandchildren Compute the amount of federal transfer taxes due as the result of the transfers described above.
This text was automatically generated from the attachment. Please refer to the attachment to view this question.
This question was created from #2 https://www.aceyourstudies.com/file/10019497/2/?focusQaId=10086369
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.