Estate Planning Flashcards
Are brokerage accounts held in joint tenancy with a son or daughter subject to probate if one owner dies?
No, anything with a beneficiary is not included in probate.
What happens to appreciated property in a community property state when a spouse dies?
The property receives a FULL step-up in basis. Not just the decedent’s half.
Can community property be owned between non-spouses?
NO.
- Only spouses can own community property
Who should be the beneficiary of a small insurance policy to be used to pay for the expenses of the decedent?
The estate itself. Not the individual executor.
Are taxable gifts included in the gross estate?
No.
Taxable gifts are ADDED back in to get the TAX BASE
What is the gross up rule?
Also known as the 3 year rule. If a decedent makes a gift less than 3 years before they pass away, any federal gift tax PAID is added to the gross estate.
What items are deductible from a decedent’s gross estate?
- Funeral expenses
- Admin expenses
- Debts
- Taxes Due
- Income taxes not paid
- Casualty loss
What happens to a deceased donee who exercises the 5 or 5 right?
The benefit amount is not included in their gross estate.
What is the amount that can be given to one individual without causing federal gift tax in 2023?
12,937,000.
17,000 Gift Exclusion
12,920,000 Gift Exemption
Gross up rule
3 Year rule.
Gift tax paid is included in the gross estate
What is the 2023 gift tax EXEMPTION?
$12,920,000
What is the 2023 gift tax EXCLUSION?
$17,000
