Estate Planning Flashcards
(26 cards)
Separate Ownership
individual
owner controls transfers
automatic survivorship by will or law of intestacy
100% probate estate inclusion
100% gross estate inclusion
JTROWS
Two or more owners
Transferable without apporoval of JT owner
Automatic survivorship at death of JT
No probate estate inclusion
50% spouses FMV x % contribution for non spouse Gross Estate Inclusion
Tenancy By Entirety
two owners, spouses
Transferable for each individual interest
automatic survivorship at death of spouse
No probate estate inclusion
50% of FMV for gross estate inclusion
Tenancy in Common
Several owners
Transferable by each owner, based on individual interest
automatic survivorship by will or law of intestacy
FMV Interest for probate estate inclusion
FMV % of ownership for gross estate inclusion
Probate Free with TLC
Trust
Operation of Law- JTWROS Ten. by Entirety, JT bank, TOD, Life estate
Contracts- named beneficiaries, pension, IRA, Annuities
Subject to probate
sole owned
Ten in common
community prop
from will to test. trust
property from our over will
beneficiary is estate
intestate property
homestead & exempt property allowances
alternative valuation dates
irrevocable
applies to all assets except depreciating value over time (use FMV)
allowed if if reduces gross estate value AND estate tax
form 706
Per Capita Distribution
divided “by the head” according to the number of individuals equally
per stirpes
”by the roots”
assets to be transferred to a deceased beneficiary’s childcare and split evenly
per capita by generation
2nd generation is set to receive the pecified % share- 3rd generation receives an even split f the remainder
general power of attorney
broad array of decisions, lapses at disability or incapacitation
non durable POA
remains active until incapacitation
springing POA
operative once the principal becomes legally incapacitated
durable POA
act immediately on behalf of the principal and does not lapse
annual gift exclusion
$19,000 to unlimited number of donees
tax free to donor and donee
present interest only
remainder amount from each donee is taxable
529
$95,000 contribution (19k x 5 years) with forward funding if the max changes you can give more to supplement
2503 (b) trust
gift trust that qualifies for AGE, multiple beneficiaries
2503 (c)
one beneficiary
income accumulates to 21 but still qualify for AGE
gift splitting
gift to a 3rd party as though each spouse has given 1/2 the gift- which ups total to $38,000
use form 709
divorce: within one calendar year gifts can not be split
Life Time Gift Limit
$13,990,000
due after limit is exceeded
-gifts to approved charities
to us citizen spouse
payment directly to medical service providers or edu. institution
unified credit
$5,541,800 offsets tax due on 13.9k
Gift Tax Appreciation Factor
appreciation divided by taxable amount of gift
gift tax adjustment of basis
1 calculate appreciation factor
2 multiply AF by gift tax paid
3 add gift tax adjustment to original basis
gift of loss property & final sale is above adjusted basis
- the donee will use donors original basis
-inherits the donors holding period
