At the time of his death in 2014, Howard was married to Bella for over 40 years. Howard and Bella had two adult children (Max and Bertha). Max and Bertha each have their own children (Howard’s grandchildren)

At the time of his death in 2014, Howard was married to Bella for over 40 years.  Howard and Bella had two adult children (Max and Bertha).  Max and Bertha each have their own children (Howard’s grandchildren)

When Howard died in 2014, in addition to his $8.5 million of certificates of deposit and investment property worth $4 million, the following facts were disclosed by the executor:

a)      In 1975, Howard decided to see what kind of fiduciary the Bank of Georgia would be for his assets.  However, he did not want to establish an irrevocable trust because the fiduciary might not perform up to expectations and he might need the property later for his own retirement needs.  Consequently, Howard established a revocable trust funded at $300,000, but the fair market value at death was $700,000.  The trust terms gave income and principal distributions (in the trustee’s sole discretion) to Howard’s children – Max and Bertha for their lives.  At the death of the second child, the trust then provides for mandatory distributions of income to Howard’s grandchildren for their lives.  The trust will terminate after the death of Howard’s last grandchild and all remainder interests are held by Howard’s great grandchildren.  At Howard’s death, the trust became irrevocable.  At Howard’s death, both Max and Bertha were alive.

b)      In 2006, Howard made a taxable gift of $100,000 to his daughter, Bertha.  Due to the unified credit, Howard did not incur any gift tax.  Prior to 2006, Howard made no taxable gifts.

c)      In 2007, the revocable trust distributed a total of $1.2 million to Max and Bertha.  This was the only distribution made from the revocable trust.

d)      In 1983, Howard purchased a paid-up life insurance policy with a face value of $300,000 payable at death to the executor of the estate to use against any estate taxes that might be due.

e)      In 1981, Howard’s mother left him with a power of appointment over a trust valued at $215,000 at the date of death.  Howard could exercise the power in favor of himself, but subject to a standard requiring exercise for his own comfort.  Howard did not exercise this power and, at his death, the property was transferred to his brother in accordance with the trust documents.

f)       Funeral expenses were $30,000 and the estate incurred $70,000 of administration expenses.

g)      The executor paid $40,000 in state death taxes to the state of Georgia.

h)      There were no other liabilities (Howard believed in using cash), and the will gave the executor no other explicit instructions

i)        Howard left his wife, Bella, $600,000 outright in certificates of deposit.  The amount distributed to Bella was not to be reduced by any expenses of the estate.

j)        The residue of his estate was left to his grandchildren

Compute the amount of federal transfer taxes due as the result of the transfers described above.  Make sure to discuss any assumptions made in your computation.

Acemyhomework
Calculate your paper price
Pages (550 words)
Approximate price: -
Acemyhomework

Quality Research Papers

We always make sure that our academic writers follow all your instructions precisely. You can choose your academic level and we will assign a writer who has a respective degree.

Acemyhomework

Best Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Acemyhomework

Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document.

Acemyhomework

On time Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. Otherwise a 100% refund is guaranteed.

Acemyhomework

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. We also promise maximum confidentiality in all of our services.

Acemyhomework

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Homework Market

Place your order

Fill in the order form and provide all details of your assignment.

Homework Market

Proceed with the payment

Choose the payment system that suits you most.

Homework Market

Receive the final file

Once your paper is ready, we will email it to you.

Academic Writing Services

Whether you have an urgent deadline or those that have time. You can take some time and relax after trusting us with your paper. We make sure that we conduct the academic writing services diligently.

Acemyhomework Acemyhomework

Essays

Essay Writing Service

Among the wide variety of academic work, essay writing is one of the simplest a student can ever come across. Usually, it is a task which students encounter and learn how to write whilst in high school. However, the case is quite different when it comes to university and college.

Acemyhomework Acemyhomework

Term Papers

Term Paper Writing

Are you looking for an online writing firm that can offer you reliable custom term paper writing help? Is your wish and desire to get someone who can guide you throughout the process of writing term papers? If yes, then you have come to the right place.

Acemyhomework Acemyhomework

Coursework

Coursework Writing Help

Coursework is essential for every student in order to graduate from college. However, most of it is deadline-centric, and that becomes a challenge to most learners. With the amount of work, learners are receiving every day, finding time to work on every task is not easy.

Acemyhomework Acemyhomework

Homework

Online Homework Help

Online homework help services are an answer to every challenge that students go through. Despite the difference in the needs and levels of learning, all students can benefit from these services. Acemyhomework is one of the best online homework help service companies you can find on the internet.