In the Current Year,martha Makes the Transfers Below to Her
In the current year,Martha makes the transfers below to her husband,Ryan.What is the amount,if any,of her marital deduction?
a)In August,she gives him a house valued at $250,000.
b)In December,she gives him a 15-year income interest in a trust with the bank name as trustee.She names her son as the remainderman.The trust is irrevocable and is funded with $500,000 of assets,and 8% is the applicable interest rate.
What are the requirements for classifying a transaction as a transfer of a qualified terminable interest property (QTIP)?
In 2013,Lilly makes taxable gifts aggregating $5.25 million.Her only other taxable gifts amount to $1 million,all of which were made in 1998.What is her gift tax liability?
Discuss at least two reasons for making inter vivos (lifetime)gifts.