Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bonnie clued on June 1, 201b, su rvlved by her husband, Abner, and two sons, can and Doug. Bonnie's only lifetime taxable gift was made

image text in transcribed
Bonnie clued on June 1, 201b, su rvlved by her husband, Abner, and two sons, can and Doug. Bonnie's only lifetime taxable gift was made in October 2013 in the taxable amount of $6.25 million. She did not elect gift splitting. By Ute time of her death, the value of the gifted property {stock} had declined to $5.1 million. Bonnie's executor discovered the items shown below. Amounts shown are the FMvs of the items as of June 1, 20115. 1 ICash in checking acoount in her name $121360 2 Cash in savings account in her name $430,003 3 Stock in names of Bonnie and Doug, joint tenants with right of survivorship. Bonnie provided ali the consideration {$3,000} to purchase the stock. $25,000 4 Land in names of Bonnie and Abner, joint tenants with right of survivorship. Abner provided all the consideration to purchase the land. $360,000 5 Personal residence in only Bonnie's name $450,000 6 Life insurance on Bonnie's life. Bonnie was owner, and Bonnie's $5,000.00 estate was beneciaryr {face value} 0 3" Trust created under the will of Bonnie's mother [who died in 2000}. Bonnie was entitled to all the trust income for life, and she could will the trust property to whomever she desired. She willed it to goong her sons in equal amounts. Bonnie's debts. as of her date of death, were $60,000. Her funeral and administration expenses were $9,000 and $T1,000, respectively. Her estate paid state death taxes of $65,000. The executor elected to deduct the administration expenses on the estate tax return. Bonnie's will included the following language: i leave my residence to my husband Abner. $250,000 of property is to be transferred to a trust with First Bank named as trustee. Ail of the income is to be paid to my husband, Abner, semiannuaily for the rest of his life. Upon his death the property is to be divided eoualiy between my two sons or their estates

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Federal Taxation 2014 Comprehensive

Authors: Timothy J. Rupert, Thomas R. Pope, Kenneth E. Anderson

27th Edition

978-0133452006, 013345200X, 978-0133450118, 133450112, 978-0133438598

More Books

Students also viewed these Accounting questions