Your long-time client, Harold (Hal) Holland will meet with your supervising partner next week for an estate
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• Principal residence in Topeka titled in the names of Hal and Winona, joint tenants with right of survivorship; purchased with $280,000 of consideration furnished solely by Winona; fair market value of $400,000.
• Household furnishings in the Topeka house; fair market value of $34,000. Winona owned almost all of these furnishings before she married Hal.
• Portfolio of publicly traded stocks in Hal's name; fair market value of $7.12 million.
• Mountain cabin and land in Vail, Colorado. Hal purchased the property in 1998 for $60,000; fair market value is $460,000. Hal never visits the cabin, but Halbert spends every summer and several weeks during the winter at the cabin.
• Stock (12 shares) in Harold's Hammocks, Inc. (a closely held C corporation) transferred to the Oz State Bank Revocable Trust in 1992; fair market value of $226,000, and basis of $15,000. Hal acquired the 12 shares in 1988 in a Sec. 351 transaction. Julianna and Gina own the remaining stock, 44 shares each, which Hal gifted to them in 2010.
• Individual retirement account at ToKan State Bank. The account consists of the funds rolled directly into the IRA from the non-contributory qualified retirement plan of Hal's former employer when Hal retired. Fair market value of the IRA is $540,000. Hal has not yet received any distributions. He is the IRA beneficiary, and Winona is the contingent beneficiary if Hal predeceases her.
• Cash of $825,000 in checking and savings accounts in Hal's name.
• Mutual fund shares in the names of Hal and Julianna, joint tenants with right of survivorship. Hal provided all the consideration ($9,000); fair market value of $64,000. He intended to use the money to finance Julianna's education, but she received a full scholarship.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Related Book For
Federal Taxation 2014 Comprehensive
ISBN: 9780133438598
27th Edition
Authors: Timothy J. Rupert, Thomas R. Pope, Kenneth E. Anderson
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