For questions 7-9, highlight the answer or delete the other three choices. 7) John and Mary...
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For questions 7-9, highlight the answer or delete the other three choices. 7) John and Mary would like to fund a trust that would receive an income tax deduction for charitable gifting. They want the trust to provide a fixed payment for each spouse for the rest of their lives with the remainder passing to charity upon their deaths. Which one of the following gifting techniques would accomplish their goals? (a) - A charitable gift annuity (b) - A charitable lead annuity trust (c) - A charitable remainder annuity trust (d) - A grantor retained annuity trust 8) After meeting with an estate planning attorney, John has decided to create two testamentary trusts through his will. One trust will distribute all income annually to Mary and give her the right to appoint trust property during her lifetime or by will at death. The other trust, funded with an exemption equivalent amount, directs the trustee to pay trust principal and income to Mary for health, education, maintenance or support. Following Mary's death, trust assets will pass to the sons per the terms of the trust. What selection below will accomplish John's goals? (a) - A QTIP trust and a power of appointment trust (b) - A bypass trust and a QTIP trust (c) - A bypass trust and a power of appointment trust (d) - A QTIP trust and an estate marital trust 9) Assume John and Mary have a combined gross estate of over $30 million and are in need of estate tax minimization strategies. Which estate planning techniques should the couple consider to reduce the taxable amount of their estates? (a) - Marital deductions and portability (b) - GRITS and preferred stock recapitalization (c) - Bypass trusts and estate equalization (d) - QDOT trusts and disclaimer provisions in wills For questions 7-9, highlight the answer or delete the other three choices. 7) John and Mary would like to fund a trust that would receive an income tax deduction for charitable gifting. They want the trust to provide a fixed payment for each spouse for the rest of their lives with the remainder passing to charity upon their deaths. Which one of the following gifting techniques would accomplish their goals? (a) - A charitable gift annuity (b) - A charitable lead annuity trust (c) - A charitable remainder annuity trust (d) - A grantor retained annuity trust 8) After meeting with an estate planning attorney, John has decided to create two testamentary trusts through his will. One trust will distribute all income annually to Mary and give her the right to appoint trust property during her lifetime or by will at death. The other trust, funded with an exemption equivalent amount, directs the trustee to pay trust principal and income to Mary for health, education, maintenance or support. Following Mary's death, trust assets will pass to the sons per the terms of the trust. What selection below will accomplish John's goals? (a) - A QTIP trust and a power of appointment trust (b) - A bypass trust and a QTIP trust (c) - A bypass trust and a power of appointment trust (d) - A QTIP trust and an estate marital trust 9) Assume John and Mary have a combined gross estate of over $30 million and are in need of estate tax minimization strategies. Which estate planning techniques should the couple consider to reduce the taxable amount of their estates? (a) - Marital deductions and portability (b) - GRITS and preferred stock recapitalization (c) - Bypass trusts and estate equalization (d) - QDOT trusts and disclaimer provisions in wills
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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