Jane has a gross estate estimated at $12 million. Approximately 75% of her estate is attributable to
Question:
Jane has a gross estate estimated at $12 million. Approximately 75% of her estate is attributable to the value of personal property and collectible items. Jane is married but has no children. Her husband does not have a large estate because he spends money freely and foolishly. Since Jane is much older than her husband, she would like for him to benefit from her wealth after her death without giving him control over the principal either while he is alive or at his death. Jane wants as little of her estate assets as possible to go toward payment of estate taxes. She currently has no will but has come to you for advice regarding provisions she should put in a will.
A)
Establish a testamentary trust naming her husband as the income beneficiary and trustee
B)
Establish a charitable remainder trust naming her husband as the income beneficiary and a qualified charity as the remainder beneficiary
C)
Establish a power of appointment trust naming her husband as the income beneficiary and a qualified charity as the remainder beneficiary
D)
Establish a qualified terminable interest property (QTIP) trust naming her husband as the income beneficiary and her children as the remainder beneficiary
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young