How will the stock be valued for purposes

Reference no: EM132213134

Question: 1. Henry owns 100 percent of the stock in Family Business, Inc.

a. Henry gives 40 percent of the stock outright to his spouse, Wanda. Henry also creates a trust for Wandaâ€^TMs benefit that qualifies for the marital deduction as Qualified Terminable Interest Property, and he transfers 40 percent of the stock to it. Henry also gives 5 percent of the stock to each of his four children. How will the gifts be valued?

b. Instead, Henry dies owning all the stock. He bequeaths the property as designated in problem 1.a. How will the stock be valued for purpose of his estate?

c. Same as 1.b., then Wanda dies. How will the stock be valued in her estate? Would it make any difference if Henry had left the stock to a trust that qualified for the marital deduction by giving Wanda a testamentary general power of appointment?

d. Same as 1.b., except that Henry gave 60 percent of the stock to Wanda outright and gave each of his children 10 percent. How will the stock be valued for purposes for Henry's estate? How should it be valued for purposes of the marital deduction?

Reference no: EM132213134

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