Question: In May 2014 Dudley and Eva enter into a property
In May 2014, Dudley and Eva enter into a property settlement preparatory to the dissolution of their marriage. Under the agreement, Dudley is to pay Eva $6 million in satisfaction of her marital rights. Of this amount, Dudley pays $2.5 million immediately, and the balance is due one year later. The parties are divorced in July. Dudley dies in December, and his estate pays Eva the remaining $3.5 million in May 2015. Discuss the tax ramifications of these transactions to the parties involved.
Answer to relevant QuestionsJesse dies intestate (i.e., without a will) in May 2014. Jesse’s major asset is a tract of land. Under applicable state law, Jesse’s property will pass to Lorena, who is his only child. In December 2014, Lorena disclaims ...At the time of her death on September 4, 2015, Alicia held the following assets. Alicia was also the life tenant of a trust (fair market value of $2 million) created by her late husband Bert. (The executor of Bert’s estate ...In 2002, Gordon purchased real estate for $900,000 and listed title to the property as "Gordon and Fawn, joint tenants with right of survivorship." Gordon predeceases Fawn in 2015 when the real estate is worth $2.9 ...In 2015, Loretta makes a taxable gift of $2 million to her granddaughter, Bertha. Presuming that Loretta used up both her unified transfer tax credit and her generation-skipping transfer tax credit, how much tax does Loretta ...Katelyn receives stock in Kite Corporation as a gift from her father, which she sells four months later. Although Katelyn sold the stock for more than it was worth when she received it as a gift, her accountant tells her ...
Post your question