In $2008$ Anne and Jim established a living trust. Anne and Jim have $2$ children, Olivj$$ and

Patrick $($ages $19$ and $21)$ from the current marriage. Their main concern was to protect

the assets for their children. The trust provided for a division of the assets into

Survivor, Bypass and QTIP trusts upon the first spouse's death.

When Jim died in $2015$ the couple held the following assets in their original trust:

Jim's $SP$ $$2,600,000$

$CP$ $$20,000,000$

Anne's $SP$ $$2,400,000$

a$.$ What assets are included in Jim's estate $($include the amounts$)?$

$SP=$$$2,600,000$

b$.$ Is there any estate tax payable at Jim's death? If not explain why.

None, because in $2021,$ the federal estate tax exempts $$11\mathrm{.}7$ million for individuals

and $$23\mathrm{.}4$ million for married couples, with a tax rate of up to $40\%$ for amounts

exceeding the exemption. Assets passed to Anne, Jim's surviving spouse, qualify

for a marital deduction, reducing Jim's taxable estate.

c$.$ Show allocation of assets into the Survivor's trust, Bypass trust and QTIP trust at

Jim's death. $($You have several options how to allocate the assets between the Bypass

and the QTIP trust.$)$

d$.$ What are the amounts included in Anne's taxable estate if she dies in $2024.$ The

following are values of the various trusts in $2024$:

e$.$ Looking at the charts provided in class what are the characteristics of the following

trusts: $($name at least $5$ for each trust$)$ In $2008$ Anne and Jim established a living trust. Anne and Jim have $2$ children, Olivia and Patrick $($ages $19$ and $21)$ from the current marriage. Their main concern was to protect the assets for their children. The trust provided for a division of the assets into Survivor, Bypass and QTIP trusts upon the first spouse$$s death.

$1.$ When Jim died in $2015$ the couple held the following assets in their original trust:

Jim$$s SP $$2,600,000$

CP $$20,000,000$

Anne$$s SP $$2,400,000$

a$.$ What assets are included in Jim$$s estate $($include the amounts$)?$

Jim$$s SP $$2,600,000,$

b$.$ Is there any estate tax payable at Jim$$s death? If not explain why.

c$.$ Show allocation of assets into the Survivor$$s trust, Bypass trust and QTIP trust at Jim$$s death. $($You have several options how to allocate the assets between the Bypass and the QTIP trust.$)$

Survivor$$s Trust Bypass

Trust QTIP

Trust

Anne Jim

Anne Jim

Totals

d$.$ What are the amounts included in Anne$$s taxable estate if she dies in $2024.$ The following are values of the various trusts in $2024$:

Survivor trust $$15,000,000$

Bypass trust $$9,000,000$

QTIP $$10,000,000$

e$.$ Looking at the charts provided in class what are the characteristics of the following trusts: $($name at least $5$ for each trust$)$

Survivors$$ Trust:

Bypass Trust:

QTIP Trust: