Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When Yuji died in March 2013, his gross estate was valued at $8 million. He owed debts totaling $300,000. Funeral and administration expenses were $12,000

When Yuji died in March 2013, his gross estate was valued at $8 million. He owed debts totaling $300,000. Funeral and administration expenses were $12,000 and $120,000, respectively. The marginal estate tax rate exceeded his estates marginal income tax rate because the estate collected only about $8,000 of income. Yuji willed his church $300,000 and his spouse $1.1 million. Calculate Yujis taxable estate.

Marital Deduction. Assume the same facts as in Problem C:13-47 except that Yujis will also provided for setting up a trust to be funded with $400,000 of property with a bank named as trustee. His wife is to receive all the trust income semiannually for life, and upon her death the trust assets are to be distributed equally among Yujis children and grandchildren.

Marital Deduction. Assume the same facts as in Problem C:13-48 and that before Yujis death in 2013 his wife already owned property valued at $300,000. Assume that each asset owned by each spouse increased 8% in value by the surviving spouses date of death in 2013 and that Yujis executor elected to claim the maximum marital deduction possible. Assume there were no state death taxes. From a tax standpoint, was the execu- tors strategy of electing the marital deduction on the QTIP trust a wise decision? Support your answer with computation

I only need help with determinng if the executors strategy of electing the marital deduction on QTIP trust was wise. Thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Return Distributions In Finance

Authors: Stephen Satchell, John Knight

1st Edition

0750647515, 978-0750647519

More Books

Students also viewed these Finance questions

Question

12 Compute each of the following a. d. (2) (5) b. e. 6) 6 (9) 5 c.

Answered: 1 week ago