Answered step by step
Verified Expert Solution
Question
1 Approved Answer
63. Comprehensive Problem. When Howard. Foth died in the current year, in addition to his $10,545,000 of certificates of deposit and investment property worth $200,000,
63. Comprehensive Problem. When Howard. Foth died in the current year, in addition to his $10,545,000 of certificates of deposit and investment property worth $200,000, the following facts were disclosed by the executor: In 1987, Howard Foth 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. b. In 1997, Howard madea taxable gift of $90,000 to his daughter, Bertha. Due to the unified credit, Howard did not incur any gift tax. In 1995, 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 that might be due. d. In 1983, Howard's mother had left him a general power of appointment over a trust valued at $215,000. This power was subject to the standard of comfort. Funeral expenses were $30,000, and administration C t . C. 8109he e. of $70,000 are expenses considered necessary for Howard's estate. Howard left his wife, Bella, $600,000 oo f. outright in certificates of deposit. The executor paid $40,000 in state g. death taxes to the state of Georgia. Compute the net estate tax payable. 63. Comprehensive Problem. When Howard. Foth died in the current year, in addition to his $10,545,000 of certificates of deposit and investment property worth $200,000, the following facts were disclosed by the executor: In 1987, Howard Foth 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. b. In 1997, Howard madea taxable gift of $90,000 to his daughter, Bertha. Due to the unified credit, Howard did not incur any gift tax. In 1995, 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 that might be due. d. In 1983, Howard's mother had left him a general power of appointment over a trust valued at $215,000. This power was subject to the standard of comfort. Funeral expenses were $30,000, and administration C t . C. 8109he e. of $70,000 are expenses considered necessary for Howard's estate. Howard left his wife, Bella, $600,000 oo f. outright in certificates of deposit. The executor paid $40,000 in state g. death taxes to the state of Georgia. Compute the net estate tax payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started