Monique, 61, created a custodial account and transferred $15,000 into the account for the benefit of her
Question:
Monique, 61, created a custodial account and transferred $15,000 into the account for the benefit of her great-great-grandson, Tony, naming Tony's father, Luis, as custodian. Monique wants the money to be used for Tony's college education. Monique's last will and testament leaves all of her property to Luis for life, and the rest to Tony. Monique's estate is currently valued at $2,300,000, but she hopes to increase her wealth through real estate investments over the next 10 years. Monique has previously used $1,000,000 of her Generation Skip Transfer Tax (GSTT) exemption on an indirect skip person. Which of the following statements is CORRECT regarding the GSTT?
A)
The $15,000 transfer to the custodial account is legally exempt from GSTT as it will be used to pay tuition fees.
B)
The transfer of $15,000 to the escrow account is a direct jump.
C)
Transfer pursuant to the last will and testament qualifies for the deceased parent rule of default.
D)
Transmission under the last will and testament is a direct jump.
Statistics Data Analysis And Decision Modeling
ISBN: 9780132744287
5th Edition
Authors: James R. Evans