Estate Planning

Question 1
Mrs. Riley dies in 2021 leaving her entire $13.4 million estate through her will to her penniless husband, John.
His estate goes to their children at his death. He has terminal cancer with a life expectancy of only 1 to 2 years.
The alternative valuation date value of Mrs. Riley’s entire estate is equal to $11,700,000. Select the
postmortem technique John should utilize to reduce the overall estate tax liability of both estates:
A. Elect Portability.
B. Disclaim $700,000 and elect to use the alternative valuation date.
C Do Nothing.
Question 2
Which of the following statements is correct?
A. The ultimate beneficiary of a QTIP Trust is selected by the grantor of the QTIP.
B. When a decedent’s taxable estate is less than the applicable estate tax credit equivalency, the estate must
still file the 706.
C. When too few assets pass to a decedent’s surviving spouse, and as such the decedent’s taxable estate is
greater than the applicable estate tax credit equivalency, the decedent’s estate is said to be overqualified.

Sample Solution