Evaluate the concept of lifetime gifts and the transfer tax
Not what you're looking for?
As the Federal estate tax is scheduled to be phased out, making lifetime gifts unnecessarily incurs a transfer tax that could have been avoided by passing the property by death.
a. Evaluate this statement. In what way is it correct? Incorrect? Misleading?
b. What could be some justification for lifetime giving?
Purchase this Solution
Solution Summary
The 284 word solution expands on the statement and provides examples to illustrate the concept. For part b of the question, there is a paragraph which includes about five possible reasons for lifetime giving.
Solution Preview
Following are the problems with the flat statement:
1. There is no assurance that the estate tax will be phased out in the current time frame projected, or whether it will at all.
2. Gifts can continue to be made without incurring a transfer tax with any number of planning techniques primarily known and understood by estate attorneys and to a lesser degree, CPAs.
3. Some donors will make gifts regardless of the tax ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.