Question
3. Jim and Helen have an estate plan that leaves all assets outright to the surviving spouse. Following Jim's death, if Helen disclaims her interest
3. Jim and Helen have an estate plan that leaves all assets outright to the surviving
spouse. Following Jim's death, if Helen disclaims her interest in assets, they will
pass to a bypass trust. Helen is a beneficiary of the bypass trust. Following both Jim and
helens death, assets will pass to their two sons, Christopher and Brian. In which of the
following situations, is bypass planning appropriate?
A. The value of Tim and Helen's estate
is well below the federal exemption
amount and no estate tax is expected to be due.
B. Helen is a surgeon and is currently
being sued for medical malpractice by
one of her patients.
C. Assets are expected to appreciate significantly between the time of the
first spouse's death and the second spouse's death. They are not concerned
with federal estate tax but are concerned with income tax.
D. Helen is comfortable managing the family finances.
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