Estate Planning Ch 2 Part 2

Front 1

Incidents of ownership?

Back 1

Any right or interest in the policy where teh insured has the power, directly or indirectly to (A) control the existence of the policy, (B)rearrange the economic interests therein, or (C) affect the benefits payable thereunder.

Front 2

What 4 deductions for Gross Estate?

Back 2

1, Expenses of and claims against the estate
2, casualty & theft losses during estate administration
3, charitable transfers and
4, marital deduction

Front 3

What are 3 basis formats for charitable contributions?

Back 3

1, An income tax deduction under sec. 170
2, a gift tax deduction under sec.2522
3, an estate tax deduction under sec.2055 (unlimited)

Front 4

What are the benefits of a charitable remainder trust?

Back 4

Convert appreciated assets into income w/o capital gains tax. Immediate charitable income tax deduction based on remainder value and life expectancy. Estate reduction.

Front 5

A pooled income fund is a

Back 5

is a trust maintained by the charity into which
each donor transfers property and from which each named beneficiary
receives an income interest. Donors contribute property to the trust reserving
a life estate in a share of the total property

Front 6

Who is required to file the estate tax return (706) and above what limit must the return be filed?

Back 6

The executor. If gross estate exceeds the appliable exclusion amount (2007 = $2MM). Must be filed w/in 9 months of death. 6 mo. extension available.