Questions 1. Assume Lisa dies on January 1, 2015. a. What is the value of Lisa's gross estate? b. What amount qualifies for the marital deduction in Lisa's estate assuming Robert survives for 6 months following her death? 2. Which of the following transfers will not result in a taxable gift from Robert in 2015, assuming he makes no other gifts? a. Robert pays each grandchild's private school tuition, $6,000 each. b. Robert pays City Hospital for the hospital bill of a friend, $15,000. c. Robert pays a university for a distant cousin's law school tuition, $16,000. d. Robert pays the tuition for Robert Jr. directly to a private university, $30,000. 3. What is impact of the survivorship clause in Robert's will? 4. Robert and Lisa are considering the purchase of a joint and survivorship (second-to-die) life insurance policy for the purpose of wealth replacement for the assets that were transferred to the CRAT and to help to create estate liquidity. Discuss the most appropriate way to own the joint and survivorship life insurance. 5. What estate planning recommendations would you make to the Franklins? 6. Explain the benefits of the grantor retained annuity trust (GRAT) Robert is planning to create in 2015 7. What are the advantages of using a charitable remainder trust (CRAT)? 8. Discuss private annuities and SCINs and how the sue of each would affect Robert Franklin and his daughter Elise in the sale of half of his share of Franklin Securities to her instead of in an installment sale. 9. If the Franklin set up an irrevocable trust for the rest of their grandchildren, what kind of tax will the grandchildren pay on the income distributed to them from this trust? Questions 1. Assume Lisa dies on January 1, 2015. a. What is the value of Lisa's gross estate? b. What amount qualifies for the marital deduction in Lisa's estate assuming Robert survives for 6 months following her death? 2. Which of the following transfers will not result in a taxable gift from Robert in 2015, assuming he makes no other gifts? a. Robert pays each grandchild's private school tuition, $6,000 each. b. Robert pays City Hospital for the hospital bill of a friend, $15,000. c. Robert pays a university for a distant cousin's law school tuition, $16,000. d. Robert pays the tuition for Robert Jr. directly to a private university, $30,000. 3. What is impact of the survivorship clause in Robert's will? 4. Robert and Lisa are considering the purchase of a joint and survivorship (second-to-die) life insurance policy for the purpose of wealth replacement for the assets that were transferred to the CRAT and to help to create estate liquidity. Discuss the most appropriate way to own the joint and survivorship life insurance. 5. What estate planning recommendations would you make to the Franklins? 6. Explain the benefits of the grantor retained annuity trust (GRAT) Robert is planning to create in 2015 7. What are the advantages of using a charitable remainder trust (CRAT)? 8. Discuss private annuities and SCINs and how the sue of each would affect Robert Franklin and his daughter Elise in the sale of half of his share of Franklin Securities to her instead of in an installment sale. 9. If the Franklin set up an irrevocable trust for the rest of their grandchildren, what kind of tax will the grandchildren pay on the income distributed to them from this trust
