How can you use the unlimited marital deduction to your advantage?
What will be an ideal response?
Answer: There is no limit to the size of transfers between spouses that can be made on a tax-free basis. Also, there is no limit on the value of an estate that can be transferred to a spouse. As a result, all federal taxes can be avoided. But, if the estate is large, lots of planning needs to be done to prepare for when the second spouse dies to avoid or reduce the taxes. In fact, using the unlimited marital deduction may incur more estate taxes, as opposed to sheltering part of the estate from taxation upon the death of the first spouse.
The unlimited marital deduction does not apply to non-citizen spouses. Transfers to non-citizen spouses are limited to the estate and tax-free transfer exemption for the year ($5.34 million in 2014) With specialized estate planning, a trust can be used to reduce or avoid taxation on marital estate transfers to non-citizen spouses.
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Indicate whether the statement is true or false
Describe how expectancy and equity theories apply to compensation.
What will be an ideal response?
Financing activities involve:
A) purchasing long-term assets. B) payment of operating expenses. C) selling long-term assets. D) issuance of long-term debt.
Which one of the following is NOT one of the six sourcing strategies?
A) negotiation with many suppliers B) vertical integration C) keiretsu D) short-term relationships with few suppliers E) virtual companies