Question
Question 3. Please use the following data for below Jack and Jill are married and have two children, John and Jane. Jack and Jill live
Question 3. Please use the following data for below
Jack and Jill are married and have two children, John and Jane. Jack and Jill live in New Mexico. At the time of Jacks death, Jack and Jill had the following assets:
Joint bank account $10,000 (JTWROS). Stock account owned by Jack and Jill titled jointly as tenants in common $1,000,000. Jacks IRA naming Jill as the beneficiary $750,000. Jills IRA naming Jack as the beneficiary $550,000. Primary residence owned jointly by Jack and Jill with right of survivorship $300,000. Mutual fund account owned by Jacks revocable trust $450,000. Vacation home Jack owned in Florida jointly with right of survivorship with Jacks brother $500,000.
V
What is the value of Jack's probate estate?
a. $500,000
b. $950,000
c. $1,500,000
d. $2,355,000
VI
What was Jack's (above) tentative tax liability? Show your work.
VII
Which of the following best describes the tax consequences associated with revocable trusts?
I. All assets are included in the beneficiarys gross estate.
II. The Grantor is responsible for the payment of income tax liability.
III. The Grantor does not make taxable gifts into the trust.
a. II only b. I and II
c. I and III
d. II and III
XVI
The Florida home will be subject to ancillary probate because Jack lived in New Mexico.
True
False
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