Molly (age 60) and Edgar (age 55) Pearson are married and live in Springfield, Missouri. They have no children together, but Molly has an adult daughter, Amy, from a previous marriage. Molly is a successful veterinarian and still active in her veterinary practice, Meow Woof, Inc. She and Edgar own the following assets.

ASSET	$ FMV on DOD	OWNERSHIP
House	4,933,000	Molly
Meow Woof, Inc.	12,672,000	Molly (value of Mollys 80% share)
Checking account	402,300	Molly & Edgar, JTWROS
Car 1	45,000	Edgar
Car 2	68,500	Molly
Whole life policy on Molly; $26,000 annual premium	238,000	Molly; Amy is beneficiary; $4,000,000 death benefit
IRA	822,500	Molly; Amy & Edgar co-beneficiaries

1. Mollys current estate plan is a will that leaves all of her estate to Edgar, if living, and if not, then to Amy. Molly dies on April 1, 2023, survived by Edgar and Amy. Describe and explain how, after Mollys death, Mollys estate is either overqualified or underqualified, and how Edgar, Amy and Mollys executor can use portability and a disclaimer to accomplish at least some of the following goals? 5 points

A. Ensure Edgar has a reasonable lifetime income.

B. All assets remaining at Edgars death go to Amy.

C. Pay the least amount of total estate tax possible after Mollys and Edgars deaths.

Use these tables to support your conclusions. Explain your conclusions in a narrative response in addition to completing the information in these tables. You will receive 0 points if you only fill in the tables.

Answer

ASSET	MOLLYS GROSS ESTATE	MARITAL DEDUCTION	AMYS SHARE
House
Meow Woof, Inc.
Checking account
Car 2
Life insurance
IRA
TOTAL

2023 Exclusion
Amys taxable share
Unused Exclusion

Edgars Assets After Mollys Death
Disclaim to Amy
Assets Available during Edgars life
Edgars Exclusion (2023 number)
Taxable at Edgars death