Estate Planning

Front 1

Fed estate tax is imposed on the FMV of?

Back 1

Taxable assets include the home, all life insurance
(even though paid to someone else), and property owned jointly with someone else.

Front 2

2031 - Who does the estate tax apply to?

Back 2

all property owned by a citizen or resident of the
United States without regard to its location. Likewise, gift tax applies to all
property transferred by a citizen or resident (§2501). In the case of nonresident aliens, only property located in the United States is subject to the federal estate tax (§2103

Front 3

Diff btwn estate tax and inheritance tax

Back 3

Estate tax: tax upon the value of all property owned at death which is "transferred". Inheritance tax is tax upon property "received".

Front 4

Most states have a credit estate tax which means?

Back 4

The federal gov't allows a credit of a certain amount for death taxes that are presumed to be imposed by the state. Most states at least take the aamount of the credit allowed.

Front 5

What must be known before estimating estate tax?

Back 5

1, What assets are included in the gross estate
2, Value of assets
3, Any and all allowable deductions.

Front 6

The gross estate includes?

Back 6

All rea or personal, tangible or intangible property, owned by teh decedent in whole or in part at the time of death.

Front 7

Sec.2033 - 2046
What are teh 4 basic categories of property and transfers included in gross estate?

Back 7

1 - Owned property
2 - Lifetime transfers
3 - Interests, Rights & Pwrs
4 - Annuities & Joint Tenancy

Front 8

Interests Owned At Death:
2033 property
owned outright

Back 8

All types of property are subject to federal estate tax whether real or personal,
tangible or intangible. This includes notes or other claims, contract rights, accrued, salary, rent, interest, and dividends (Interests that terminate upon death (e.g., a life estate) are not taxable under
§2033) (the value of wrongful death claims (or the proceeds)
is not taxable)

Front 9

Interests Owned At Death:
2034 dower
& curtesy

Back 9

Dower and curtsey are not vested interests, but mere expectancies in the property.
A dower (to the wife) or curtsey (to the husband) is a statutory provision
in a common-law state that directs a certain portion of the estate to the surviving
spouse. (For example, a husband without a will dies, with an estate of $1,200,000. Under
state law, the wife is entitled to one third of the husband’s estate. As a result,
the $400,000 that the wife receives is included in the husband’s estate
under §2034)

Front 10

Interests Owned At Death:
2039 survivor
annuities

Back 10

taxes the value of an annuity or other payment receivable by
any beneficiary by reason of surviving the decedent under any form of contract
or agreement entered

Front 11

Interests Owned At Death:
2040 joint
interests

Back 11

are included in the gross
estate of the first joint tenant to die.

Front 12

Interests Owned At Death:
2041 powers
of appointment

Back 12

A “power of appointment” is a power granted by one person to another to dispose
of property even though it is “owned” by another. Section 2041 includes
in the gross estate of the holder of such a power the value of the property subject
to a general power of appointment.

Front 13

Interests Owned At Death:
2042 life
insurance

Back 13

proceeds from life insurance on the decedent’s life are includible
in the gross estate if the proceeds are:
(i) Payable to (or for the benefit of) decedent’s estate; or
(ii) Payable to any other beneficiary, but only if the decedent possessed
“incidents of ownership” in the policy at the time of death.