Your client Mary, a surviving spouse of John, has approached you to provide her with gift and estate planning services. Respond to the following questions and submit your answers in a Word Document to the Unit 1 Assignment Dropbox. Remember to review and reference the applicable sections of the Tax Code, including Publications 706 and 709. 1. Based on Mary’s situation, determine the credit for the gift and estate tax exclusion. Use 2017 indexed exclusion of $5,500,000.

1. John used $450,000 of his gift and estate tax exclusion for his lifetime gifts. Assuming that John’s estate used $2,300,000 of his estate tax exclusion in closing his estate, determine Mary's estate tax exclusion when she dies if she and her spouse elected to gift split on all taxable gifts. Clearly show your calculations.

2. Mary wants to transfer property into an irrevocable trust she created, but she intends to retain the right to change the beneficiaries. Analyze the circumstances that are required for Mary’s transfer to be a completed gift.

3. Explain to Mary the gift tax annual exclusion and why it was enacted.

4. Differentiate between a present interest and a future interest. How do they apply to Mary’s situation?

Answer rating: 100% (QA)

1 The estate tax is a tax on the transfer of property at deathit is also known as death tax This is ... View the full answer