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Sally and Damon are determining which assets they should leave to their son Jake, and which assets they should leave to their favorite charity. Jake
Sally and Damon are determining which assets they should leave to their son Jake, and which assets they should leave to their favorite charity. Jake is a successful surgeon and has a high income. Which of the following assets would be most efficient from an income tax perspective to leave Jake?
A. Life insurance with a death benefit of
$1,000,000.
B. A stock account currently valued at
$1,000,000 with a basis of $575,000.
C. Damon's 401 (k) valued at $1,000,000.
D. Sally's Roth IRA valued at $1,000,000.
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