Estate Planning

          Question 1 Mrs. Riley dies in 2021 leaving her entire $13.4 million estate through her will to her penniless husband, John.
The post Estate Planning first appeared on COMPLIANT PAPERS.

Question 1
Mrs. Riley dies in 2021 leaving her entire $13.4 million estate through her will to her penniless husband, John.
His estate goes to their children at his death. He has terminal cancer with a life expectancy of only 1 to 2 years.
The alternative valuation date value of Mrs. Riley’s entire estate is equal to $11,700,000. Select the
postmortem technique John should utilize to reduce the overall estate tax liability of both estates:
A. Elect Portability.
B. Disclaim $700,000 and elect to use the alternative valuation date.
C Do Nothing.
Question 2
Which of the following statements is correct?
A. The ultimate beneficiary of a QTIP Trust is selected by the grantor of the QTIP.
B. When a decedent’s taxable estate is less than the applicable estate tax credit equivalency, the estate must
still file the 706.
C. When too few assets pass to a decedent’s surviving spouse, and as such the decedent’s taxable estate is
greater than the applicable estate tax credit equivalency, the decedent’s estate is said to be overqualified.

The post Estate Planning first appeared on COMPLIANT PAPERS.