Reference no: EM131774823

Part 1:

Question 1: With regard to undivided ownership of property, what is the right of survivorship? When does it exist?

Question 2: What purpose does 2516 serve?

Question 3: What is the justification for the annual exclusion?

Question 4: At the time of Emile's death, he was a joint tenant with Colette in a parcel of real estate. With regard to the inclusion in Emile's gross estate under 2040, comment on the following independent assumptions:

A. Emile and Colette received the property as a gift from Douglas.

B. Colette provided the entire purchase price of the property.

C. Colette's contribution was received as a gift from Emile.

D. Emile's contribution was derived from income generated by property he received as a gift from Colette.

Question 5: Under what circumstances will the creation of a joint tenancy not constitute a gift when one of the tenants furnishes more of the consideration than the other (others)?

Question 6: Ramon owns a policy on the life of Winnie, with Lactrica as the designated beneficiary. Upon Winnie's death, the insurance proceeds are paid to Lactrica.

A. Are any of the proceeds included in Winnie's gross estate?

B. Does Winnie's death generate any tax consequences to Ramon?

Question 7: In the term of the QTIP (qualified terminable interest property) election, comment on the following:

a. Who makes the election?

b. What the election accomplishes.

c. The tax effect of the election upon the death of the surviving spouse.

Question 8: Property passing to a surviving spouse who is not a U.S. citizen is not eligible for the estate tax marital deduction. Is this statement always true? Explain.