Martha is single, 65 years old, and a Florida resident. Martha has two adult children and four
Question:
Martha is single, 65 years old, and a Florida resident. Martha has two adult children and four grandchildren (each child has two children). In 2023 Martha owns income producing real property in a single member LLC valued at $50 million. The property is expected to appreciate 5% each year and produces taxable income of $5 million each year. Martha seeks advice from you, her trusted tax advisor, concerning how to minimize her federal estate tax and convey the greatest value of property to her descendants, either in life, death or both. Her adult children are financially secure on their own but not her grandchildren. Martha would like to benefit her church but not if it means a significant reduction in her children and grandchildren's inheritance.
Concisely explain the specifics of your recommendation(s) and how your plan works to reduce Martha's federal estate tax.
In your answer provide no more than two (2) recommendations; however, they may be combined to work together.
Provide numerical estimates or summary projections on the potential estate tax savings.
Support your memo with your research and authority from the tax law.
Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science
ISBN: 978-0324656633
5th edition
Authors: Cliff T. Ragsdale