LO.6 Discuss the estate tax treatment of each of the following. In all cases, assume that Rachel is the decedent and that she died on July 5, 2012.

a. State income tax refund for 2011 received on July 6, 2012. Rachel claimed the standard deduction on her 2011 Federal income tax return.

b. Federal income tax due for year 2011.

c. Rachel held a life estate in a trust created by her husband. No QTIP election was made when the trust was created.

d. Same as (c), except that a QTIP election was made.

e. In 2011, Rachel gave an insurance policy on her life to her son, Jim, who was the beneficiary.

f. Same as (e), except that the policy was on Jim’s life (not Rachel’s life).