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27 Cards in this Set

  • Front
  • Back
QTIP Requirements
1. right to income
2. no power to appoint to anyone
3. the executor of the first estate must make QTIP election by checking the box.
Estate Tax Form
Form 706
Gift Tax Form
Form 709
Decedent's final income tax
Form 1040
Estate's income tax form
Form 1041
STUB income
amount that accrues b/w last distribution account/trust and date of death
Charitable Remainder Trusts
(tax exempt yes or no)
Sec. 2041
General Pwr. of Appointment
Power to appt to oneself, one's estate, one's creditors, one's creditors of the estate.
Hanging Crummy Power
a power that extends beyond the 30 day period to withdraw.
Grantor Trust Rules
1. Revocable
2. retained enjoyment
3. benefit of yourself or spouse
4. Used to discharge of your support obligations
Sec. 2044
QTIP Trust
In the surviving spouse's gross estate.
Sec. 2702
Special Valuation Rules
1. Applies to gifts only
2. Retained Life Estate and give away remainder.
3. Only lineal desendants
B Trust
Credit shelter trust, credit trust, Bipass Trust, Family trust
A Trust
Marital Deduction trust
2036 retained possesion or enjoyment for:
1. Life
2. Period not ascertainable w/o reference to death
3. Or, for a period that does not in fact end before death.
Sec. 2039
Annuities and Death Benefits
1. Contract that is not life insurance
2. Beneficiary that will receive a payment by surviving the decedent
3. The decedent must be receiving an annuity at the time of death or have a right to receive at the time of death
4. Payments must arise under the same contract that the beneficiary was going to get paid under
5. Payments must continue for the decedent's life, for a period not ascertainable without reference to decedent's death, or for a period that did not in fact end before decedent's death.
Estate Trust
a trust to pay the income to the surviving spouse for life and the remainder to the surviving spouse's estate. It will be included in the decedent's gross estate but will qualify for the marital deduction.
Gift completion on delivery or recording?
Whichever is earlier.
Gift Completion w/ Contract?
When the contract becomes binding.
Part Sale, Part Gift (3)
1. Compute amount of gift
2. Compute the gain
3. Compute the basis
1. Gift to Minors
2. Present Interest Gift
3. Must pay everything out at age 25
Beneficiary would be given a limited withdrawal right. Makes it an annual exclusion gift.
anyone can be trustee or remove or replace the trustee
Creation of family limited partnership
Expanded Crummy powers to contigent beneficiaries
QTIP Requirements (3)
1. Surviving spouse must have right to income
2. no one can appoint property to anyone beside the spouse.
3. Must have elected QTIP Treatmeent
Life Etate w/ POA exception
1. can be a fraction of the property
2. surviving spouse can have the power to appoint interest.
3. STUB income