Blog

Taylor received stock from his Dad as a lifetime gift as follows: Date of gift – 01/01/2024 FMV at date of gift – $300 Date of purchase – 06/07/2007 Purchase price – $500 What are the tax consequences if Taylor sells 2/2/2024 for $400?

 Inflammation of the kidney is

Beneficiaries of a trust must be legal persons and cannot be legally incompetent persons who are unable to enforce their rights.  

Special-use valuation under 2032A may be elected by the executor for which of the following kinds of property? (1) An art collection sold from the estate within 6 months after death (2) Farmland

Mary is updating her estate planning documents and is worried that the property that her daughter, Sally, will inherit from Mary may disqualify her from receiving certain means-tested government benefits. What type of trust should Mary consider setting up for Sally to receive her inheritance to help preserve such benefits?

John’s net worth is $17,000,000 consisting entirely of his separate property. His wife’s net worth is $200,000, consisting entirely of her separate property. As part of John’s estate plan, he would like to transfer as much property to his children as possible after his wife’s death, while applying as much of his Estate Tax exemption as possible to his estate upon his death. He would also like to ensure that his wife has access to all of his net worth for the rest of her life. Assuming John died in 2024, and assuming his wife is a U.S. citizen, which of the following estate plans would best fulfill his goals:

One of the benefits of setting up a Revocable Living Trust is the potential for reduction of estate and gift taxes.  

Kathi and Darrin are married and own their home together as community property. They purchased the home 17 years ago for $100,000. After many improvements and a surge in the market, the home is now worth $200,000. If Darrin died in 2024 and left his share of the home to his daughter Elizabeth, what is Kathi’s basis in her share of the home?  (Assume no value for homestead right.) 

Under which of the following circumstances would a decedent be considered to have died intestate? The decedent handwrote a will but did not sign or date it. The decedent was not of “sound mind” when they signed the statutory will. The decedent failed to prepare a last will and testament.

Nellie recently executed a power of attorney giving Jessie the power to perform certain tasks. Which of the following powers given to Jessie would cause the property to be included in Jessie’s gross estate for federal estate tax purposes?