Reference no: EM132280820

1. Elizabeth transferred her personal residence to her daughter Tracy, but Elizabeth retained the right to use the residence for 10 years.  Two years after the transfer, Elizabeth dies.  At Elizabeth’s death, should any portion of the residence that she gave to Tracy be included in Elizabeth’s gross estate?

2. Harry creates a revocable inter vivostrust provides that all of the trust income should be paid to Sandy for life and remainder to Sandy’s son Luke.  Harry eventually plans to make the trust irrevocable, but he becomes incapacitated for many years before he dies, and so he dies without ever changing the terms of the trust.  Since he was died without legal capacity to change the trust, was any portion of it includible in his gross estate?  Explain.

3. Patty transfers real estate to Robby, and she pays gift tax on the transfer. Then, 18 months after the transfer, Patty dies when she is impaled by a lawn dart.  Is any portion of this transfer to Robby subject to inclusion in her gross estate? Explain.

4. Drew places $100,000 in trust for 15 years with the Drew named as trustee, income to be paid to Karen, remainder to Simon.Was there a completed gift, if so, what interest(s) constitutes the gift(s)?

5. Ramisha places $100,000 in trust for 15 years with the Ramisha named as trustee, and with income to be paid to Anita and Zach in such proportions as Ramisha in her uncontrolled discretion designates, reminder to Olivia. Was there a completed gift, if so, what interest(s) constitutes the gift(s)?

6. Jordan places $500,000 in trust for 20 years with Jordan named as trustee, and with income to paid to Donna and/or Susan “as necessary for medical care,” and remainder to Marcia.  Was there a completed gift, if so, what interest(s) constitutes the gift(s)?

7. Laura places $500,000 in trust for 20 years, income to be paid to Theresa, remainder to Ronald. Laura reserves the right to revoke the trust during the first five years. Was there a completed gift, if so, what interest(s) constitutes the gift(s)?

8. Sam creates a trust on March 15, 2015, in which Ben is named the income beneficiary for life. The trust further provides that upon Ben’s death the proceeds from the trust are to pass to Nicholas, if Nicholas survives Ben. If Nicholas predeceases Ben, then Ella, or Ella’s estate will inherit the trust proceeds. If Ben, Nicholas and Ella seek to disclaim the transfer from Sam, can any of them do so? If so, when must they do so?

9. Jack made a gift of 200 shares of Disney stock to Gigi as custodian for David under the State’s Uniform Gifts to Minors Act.  At the date of Jack’s gift, David was 13 years old. When David turned 18 (the State’s age of majority) the 200 shares of Disney stock were given to him and registered in his name. Between his 18thand 21stbirthdays, David received dividends.  A few months after turning age 21, David disclaimed the 200 shares of Disney stock. Assuming he did not accept any dividends after his 21st birthday, was this a valid disclaimer?