Estate planning

Design Layout References Mailings Review View Help Tell me what you want to do eful-files from the Internet can contain viruses, Unless you need to edit, it's safer to stay in Protected View, Enable Editing eatures are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com 12. Hugh created an irrevocable trust five years ago and transferred a $4 million whole- life policy to the trust. His wife, Meryl, will receive the income for life, with the remainder payable to her estate. What is the consequence of this transfer? A. Hugh and Meryl can offset the taxable amount of the premiums with gift- splitting and annual exclusions. B. Assuming Meryl survives Hugh, only the trust's remainder interest is includable in her estate. C. When Hugh transferred the policy to the trust, he could not offset the gift tax with a marital deduction. D. Hugh can borrow from the policy's cash value without adverse tax consequences. 13. B.J. owns a single-premium life insurance policy on his wife Cora's life. His will provides that all of his estate will pass to Cora or, if she predeceases him, to their son, Hoss. Assume that B.J. predeceased Cora. Which statement is incorrect? A. The replacement cost value of the policy is included in R.J.'s probate estate. B. A marital deduction is available to B.J.'s estate equal to the replacement cost of the policy. C. Hoss is the new owner of the policy. D. If B. J. had gifted the policy to Cora six months before he died, the policy would not be included in B. J.'s estate. I True or False: 14. A surviving spouse may create an inherited IRA and begin distributions based on his/her life expectancy 100 3:41 AM ENG O 12/4/2020