In 2008 Anne and Jim established a living trust. Anne and Jim have 2 children Olivia and Patrick (ages 19 and 21) from the current marriage and Anne has a child Elliott (age 33) from a prior marriage. Their main concern was to protect the assets for their children. The trust provided for Survivor, Bypass and QTIP trusts upon the first spouse’s death.

When Jim died in 2011 the couple held the following property in their trust:

Jim’s SP $2,600,000

CP $20,000,000

Anne’s SP $2,400,000

A. What is the amount in Anne’s taxable estate if she dies in 2021. The following are values of the various trusts in 2021:

Survivor trust $15,000,000

Bypass trust is $9,000,000

QTIP is $10,000,000?

What assets are included in Jim’s estate? Is there any estate tax payable? Or could you apply marital deduction? 

C. Show allocation of assets into Survivor’s trust, Bypass trust and QTIP trust.

Answer rating: 100% (QA)

Quiz a Assuming that Anne and Jims estate plan has not been modified ... View the full answer