Reference no: EM131105722
Assignment Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax
Suppose you are a CPA, and your client has requested advice regarding establishing an irrevocable trust for his two grandchildren. He wants the income from the trust paid to the children for 20 years and the principal distributed to the children at the end of 20 years.
Use the Internet and Strayer databases to research the rules regarding irrevocable trusts, gift tax, and estate tax. Be sure to use the six step tax research process in Chapter 1 and demonstrated in Appendix A of your textbook as a guide for your written response.
Write a one to two page letter in which you:
1. Analyze the effect of an irrevocable trust on the gift tax and future estate taxes.
2. Suggest other significant alternatives that the client could use both to reduce estate tax and to maximize potential advantages of the payment of gift taxes on transfers of property.
3. Use the six step tax research process, located in Chapter 1 and demonstrated in Appendix A of the textbook, to record your research for communications to the client.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
• Prepare client, internal, and administrative documents that appropriately convey the results of tax research and planning.
• Create an approach to tax research that results in credible and current resources.
• Analyze tax issues regarding the gift tax and the estate tax.
• Analyze tax issues regarding trusts and estates.
• Use technology and information resources to research issues in organizational tax research and planning.
• Write clearly and concisely about organizational tax research and planning using proper writing mechanics.
|
Examine the types of energy
: Identify one example of potential energy in your personal life - This activity will examine the types of energy in each student's personal life, as well enhance each student's understanding of energy units.
|
|
Additional power with its chinese suppliers
: 1. How else could a foreign retailer exert additional power with its Chinese suppliers (and not face government restrictions)? 2. How can foreign retailers successfully position themselves in China?
|
|
Explain relationship between the three generic strategies
: What are some of the ways in which a firm can attain a successful turnaround strategy? Explain the relationship between the three generic strategies and the five forces that determine the average profitability within an industry.
|
|
Important role in determining
: In plastic injection molding, temperature, time in mold, and injection pressure each play an important role in determining the strength of the part. At MAR Inc.,
|
|
Analyze the effect of an irrevocable trust on the gift tax
: Analyze the effect of an irrevocable trust on the gift tax and future estate taxes. Suggest other significant alternatives that the client could use both to reduce estate tax and to maximize potential advantages of the payment of gift taxes on tran..
|
|
Find the force on the gate if its upper edge
: A vertical rectangular floodgate is 6.00 ft wide and 2.00 ft high. Find the force on the gate if its upper edge is 1.00 ft below the surface of the water
|
|
Resulting strategic responses to new stage
: The U.S. Healthcare system is currently in a stage where consumer choices are re-shaping health care. What are the resulting strategic responses to this new stage? Do you work for an organization that is responding in any of these ways? Explain..
|
|
Analyze the potential benefit that a flat tax structure have
: Analyze the potential benefits that a flat tax structure might have on both taxpayers and the United States Treasury. Defend or critique a flat tax structure.
|
|
The natural length of a spring
: The natural length of a spring is 8.0 cm. A force of 12 N stretches it to a length of 10.0 cm. How much work is done in stretching it from a length of 10.0 cm to a length of 14.0 cm?
|