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9 Cards in this Set
- Front
- Back
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Gift Tax
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Prevents all gifts made during life before death to avoid estate tax and would be used to avoid lifetime taxes by gifting heavily before taxes paid and then taking gifts back+
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Trustee Discretion for 2503(b) and (c)
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Trustee has no discretion for cummulation of income for (b) and broad discretion for (c)
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2503(b) and 2503(c) Distribution of assets if minor dies
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(b): Trust controlled (to certain beneficiaries)
(c): Trust income and principal go to minor's estate or appointees |
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UGMA
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Dispostion and investments are dictated by statutes, only one minor for account, values are included in donor's estate, minor is taxpayer
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Gift taxes/basis computation
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DB+(Aprc/MV@Gift)*GT Paid
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Computing Gift Taxes Payable
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(1) Compute gift tax on taxable gifts regardless of when made
(2) Compute gift tax on all taxable gifts made prior to present gift(s) (3) Subtract 2 from 1 (4) Enter gift tax credit remaining (5) Subtract 4 from 3 (if negative---> 0) |
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Gift Tax Returns
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(1) Future interest gifts- yes for all values
(2) Present interest gifts- none unless exceeds annual exclusion or splitting used (gift of $14,001 needs to file return even though if given by married couple, no taxes is paid) (3) Charity- not required |
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LA Will Requirements
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(1) Written/Typed
(2) Notarized + 2 Witnesses (3) Atestation Clause (4) Signed at end and on each page (5) Capacity to make a will |
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When Adjusted BV is Applicable/Important
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(1) Asset holding company
(2) Real estate development (3) One person corporations (4) Near-liquidation companies (5) Highly competitive but marginally profitable companies |
