Analyze the effect of an irrevocable trust on the gift tax

Assignment Help Other Subject

Reference no: EM133207599

Assignment - Tax-Planning Client Letter Essay

Description - OVERVIEW - 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.

INSTRUCTIONS - Use the Internet and Strayer Library 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 1-2 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.

The specific course learning outcome associated with this assignment is: Determine the effect of an irrevocable trust on taxes including a strategy to reduce taxes and maximize benefits.

Reference no: EM133207599

Questions Cloud

How eating complex carbohydrates and protein is better : Discuss how eating complex carbohydrates and protein is better for your body's metabolism and a more efficient way to create ATP.

What will the company dividend be in seven years : Four years ago, Bling Diamond, Inc., paid a dividend of $1.65 per share. The company paid a dividend of $2.10 per share yesterday. What will company dividend

Develop a workplace accommodations letter : Develop a Workplace Accommodations letter that could be sent to your Employer requesting the ability for you to continue working from home due to Long COVID Sym

How do scientists decide whats right and wrong : How do scientists decide what's right and wrong? Who modifies the vision of gravity that we had been passed down since Newton?

Analyze the effect of an irrevocable trust on the gift tax : Assignment - Tax-Planning Client Letter Essay - Analyze the effect of an irrevocable trust on the gift tax and future estate taxes

Relate the plain joint and the acromioclavicular joint : 1. Apply comprehension you might interpret the term caves to make sense of the idea of the limit of the bones and lattice

What advantages can entrepreneur : Saint Leo University-What advantages can an entrepreneur who buys a business gain over one who starts a business from scratch?

Compare the contemporary uae economy to nature of economy : Compare the contemporary UAE economy to the nature of the economy in 1980s or 1970s. California State University Chico.

Specific stakeholders in advocacy efforts : Social Problem: Child abuse is a global epidemic. Although there are laws to protect children, child abuse continues to remain a major problem in the United Sta

User Account

All Pages