How much is Mario's estate tax liability?
Mario's executor determined that the estate tax liability for Mario's estate is $600,000. However, Mario's executor forgot to file the estate tax return and filed and paid 65 days late. Calculate the penalties that Mario's estate will now have to pay.
What is drafting a will?
Drafting legal documents, such a wills, is an activity reserved for licensed attorneys. If you are not a licensed attorney and you prepare a legal document, you have engaged in the unauthorized practice of law. Click again to see term 👆. Tap again to see term 👆.
What is surety bond?
A surety bond is a bond posted by the administrator of the probate process. Letters testamentary is the document given to the executor from the probate court authorizing the executor to act on behalf of the estate. Jane transferred a piece of real estate to her son Christopher 6 months ago.
What is the difference between option B and option A?
The correct answer is b. Option b is an advantage of using a revocable living trust. Option a is incorrect because use of a revocable living trust does not reduce the grantor's federal estate taxes because the full fair market value of the trust assets are included in the grantor's gross estate.
Why is option a incorrect?
Option a is incorrect because the buyer of a SCIN only makes payments until the earlier of (1) the seller's death or (2) the term set forth in the SCIN. Option b is incorrect because each pay-. ments received by the seller consists of (1) interest income, (2) capital gain, and (3) return of. adjusted basis.
What is a QTIP trust?
An outright bequest to a resident spouse who, prior to the decedent's death was a noncitizen, but who after the decedent's death and before the estate tax return was filed, became a U.S. citizen. Which of the following accurately describes a QTIP Trust.
What happened to Jack and Carol?
Jack and his wife, Carol, were in an auto accident. Carol died three weeks before Jack did. His gross estate was $6.2 million. One of the major assets in his estate was closely held stock in an equipment leasing firm (C corporation) with which rapidly appreciating equipment was purchased.
Where did Chelsea go to college?
Chelsea graduated from the University of Alabama. Each year, football season tickets are sold only to those who make a contribution to the university of $2,000 or more. Chelsea contributes $2,000, so that she meets the requirements to purchase season tickets, and also spends $500 on the season tickets.
What is reversionary interest?
As used in this subparagraph, the term “reversionary interest” includes a possibility that the policy or its proceeds may return to the decedent or his estate and a possibility that the policy or its proceeds may become subject to a power of disposition by him. In order to determine whether or not the value of a reversionary interest immediately ...
What is life insurance?
The term “insurance” refers to life insurance of every description, including death benefits paid by fraternal beneficial societies operating under the lodge system. (2) Proceeds of life insurance which are not includable in the gross estate under section 2042 may, depending upon the facts of the particular case, ...