Lily dies early in the current year. All her property passes subject to her will, which provides that her surviving husband, Rick, is to receive all the property outright. Her will further states that any property Rick disclaims will pass instead to their children in equal shares. Lily's gross estate is about $10 million, and her Sec. 2053 deductions are very small. Rick, who is in poor health,
already owns about $6 million of property. What tax issues should Rick consider with respect to the property bequeathed to him by his wife?
What will be an ideal response?
• Should Rick consider making a disclaimer? If so, of how much?
Unless Rick makes a disclaimer, Lily's estate will waste its exemption equivalent. Rick should disclaim at least $10,000,000 to allow Mary's estate to make use of the full unified credit. Portability of the unified credit between spouses makes this problem less difficult in 2012.
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Fill in the blank(s) with correct word
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Susan takes her car to Ken's repair shop and asks him to fix the car's brakes. Ken completes the work and sends Susan a bill for $100 . Susan refuses to pay so Ken refuses to return Susan's car. Susan can probably successfully sue Ken for
a. battery. b. conversion. c. trespass to property. d. none of the choices.