Making annual transfers equal to the gift exclusion

Assignment Help Financial Management

Reference no: EM13765391

Oscar, aged 70, and Maggie, aged 60, are married and jointly own a personal residence valued at $3,800,000. Oscar also owns stocks valued at $4,700,000; an art collection valued at $1,400,000; a retirement account valued at $900,000 contributions entirely from the pretax income; $800,000 in cash; and $1,000,000 in miscellaneous assets. Oscar's will specifies that when he dies, his half of the personal residence will go to Maggie but that all his other assets will pass to his four children because Maggie has sufficient income from a trust fund she inherited from her grandfather. Oscar made no previous taxable gifts

a. What was Oscar's estate liability when he died in 2014?

b. Each of Oscars four children has three children (total of 12 grandchildren) If Oscar had begun transferring assets to his children and grandchildren in years 2010 through 2014, how much could he have removed in value from his estate over those five years through gift splitting and making annual transfers equal to the gift exclusion?

Reference no: EM13765391

Questions Cloud

Failure of the firm accounting information : Based on the information you researched, assess the failure of the firm's accounting information system to prevent the related fraud / embezzlement.

Write a java application program called largest.java : Write a Java application program called Largest.java that inputs a series of 10 single-digit numbers and determines and prints the largest of the numbers

Focuses on using a cost-benefit perspective : Rational Choice Theory focuses on using a cost-benefit perspective. Apply this to a specific crime and demonstrate how a criminal would utilize this cost-benefit perspective

Assignment on audit planning and control : It is common industry knowledge that an audit plan provides the specific guidelines auditors must follow when conducting an external audit.

Making annual transfers equal to the gift exclusion : Oscar, aged 70, and Maggie, aged 60, are married and jointly own a personal residence valued at $3,800,000. Oscar also owns stocks valued at $4,700,000; an art collection valued at $1,400,000; a retirement account valued at $900,000 contributions ent..

Write a essay on sir thomas wyatt who so list to hunt : Write a documented essay on Sir Thomas Wyatt, "Whoso List to Hunt".

Program to record the temperature and pressure : Write a program to record the temperature and pressure values in a scientific experiment and store the data in two one-dimensional arrays, then identify the extreme values of pressure and temperature. The array size is 20.

What is the available net working capital : On March 31, Adolpha, Inc. reported the following information on its financial statements. What is the available net working capital for Adolpha, Inc.?

Is jim likely to succeed : Steve buys a house from Jim. There is no written contract. However, Steve pays the purchase price, moves onto the property, and begins to build a new garage. Jim seeks to evict Steve from the property stating that there was never a valid contract...

User Account

All Pages