Question: 1
A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. Which of the following statements concerning this action is (are) correct?
l. lf the husband dies first, it would be easier to qualify his estate for a Section 303 redemption of his business interest.
ll. lf the husband dies first, the probate costs of his estate could be increased.
Question: 2
A single man with substantial assets and income is supporting his 80-year-old partially senile mother with monthly cash gifts. He is trying to find a practical way to support his mother while at the same time saving federal gift and income taxes without giving up ultimate control of any assets. Which of the following courses of action will best accomplish these objectives?
Question: 3
Which of the following statements concerning the generation-skipping transfer tax (GSTT) is correct?
Question: 4
The failure of an individual to have a will can result in which of the following?
1. The state will determine the disposition of the individual's probate estate.
2. The decedent's preference for a personal representative, guardian, and other fiduciary' roles may be ignored.
Question: 5
Which of the following factors is (are) used to make a choice between having an entity-purchase or a cross-purchase partnership buy-sell agreement?
l. The number of partners
ll. The divergence of the partners' business knowledge and skills
