11. Assuming Julian died on 12/31/2021, calculate his probate estate.

$5,525,000.

$2,000,000

$13,025,000.

$5,450,000.

12. Assuming Julian died on 12/31/2021, calculate the marital deduction available for transfers to Maria (remember this is a net amount).

$4,564,500.

$4,539,500.

$5,450,000.

$3,539,500.

13. Assuming Julian died today, which of the following statements regarding a valid disclaimer is correct?

If Javier disclaimed his property, the property would transfer to Maria.

In order for the disclaimer to be valid it must be in writing or witnessed by three non-related individuals if the disclaimer is oral.

Assume Julian left Elizabeth his interest in the Yacht. If Elizabeth disclaims her property then the transfer will be subject to GSTT.

If Maria wanted to disclaim a portion of the property, she must do so by the due date of the estate tax return plus extensions.

14. Assuming Maria died today, which of the following statements is true?

All of Maria's community property assets would transfer to Julian because of the implied right of survivorship.

Maria's gross estate would include the life insurance policy on Julian.

Maria's assets would avoid probate.

State intestacy law would dictate who received Maria's assets.

15.If Julian died today, which of the following statements is true regarding the transfers made in his will?

Maria will receive Julian's interest in the Investment Portfolio.

Elizabeth will receive the proceeds of the life insurance policy.

Javier will receive the yacht in place of the house boat.

Melanie may potentially receive Vacation Home 1 as Lisa's rightful heir.

The Lopez Case MARIA AND JULIAN LOPEZ BACKGROUND Maria and Julian Lopez, both age 63, have been married for 40 years, are both in good health, and they are citizens and residents of New Mexico. They expect to work until age 66 to 70. Maria and Julian live in a community property state. They have the following children and grandchildren: Children Age Grandchildren Elizabeth 40 4 children (ages 15, 14, 13 & 12) Javier 35 3 children (ages 5, 3 & 1) Lisa Deceased 1 child Elizabeth, an estate planning attorney, is married, healthy, and happy. Maria and Julian adore Elizabeths husband, Scott, and their four children. Javier, a high-net-worth investment consultant, was recently divorced and his ex-wife, Catherine, has custody of their three children. Maria and Julian never quite cared for Catherine, as she always seemed to be quite snooty. Since the divorce, the relationship between Maria and Catherine has been very strained. Since his divorce, Javier has had somewhat of a mid-life crisis. He recently rented a penthouse apartment and bought a new Jaguar. Javier has also been dating Natalia, a 21-year-old swimsuit model. While Maria and Julian are confident that this is only a passing phase, they are concerned about giving any gifts outright to Javier or his children. Lisa, Maria and Julians third child, was a bit of a wild child. Lisa died in a tragic motorcycle accident in her senior year of college while on her way home to tell her parents about a big secret she had been keeping. The summer before, Lisa had given birth to a baby girl named Melanie. At the time, Lisa gave the baby to the babys father, an older married man, although no official adoption was ever transacted. Maria and Julian still do not know about Melanie. Maria and Julian own Peas & Kumquats, a popular organic health food store in a general partnership with another couple located in New Mexico. Scott, Elizabeths husband, has worked at the store since he was a kid. Scott is now one of the store managers who continues along with the other partners to direct the company as executives. Maria and Julian would like to reward Scott for all of his hard work by giving Scott and Elizabeth 3/4 of their interest in the business and giving the remaining 1/4 of their interest in the business to Javier. They do not want Javier to have any control over the business, just to have an income interest. Elizabeths youngest child, Andrew, was born with a serious physical disability. To provide additional support for Andrew, Julian created an irrevocable trust with Andrew as the sole beneficiary with an $8,015,000 transfer of separate property 5 years ago. The trust meets the requirements of Section 2503(c). Assume for any calculation of GSTT that the annual exclusion was $14,000 and the lifetime exemption was $11,700,000. Also assume that the GSTT and gift tax rates were 40% for determination of GSTT even though they were paid 5 years prior.