In 2013, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactionsdescribed below. Determine Ginger’s gift tax liability for 2013 if she and Greg elect giftsplitting and Greg gave their son Stevie stock valued at $80,000 during 2013. Ginger’sgrandmother Mamie died November 12, 2010, and Mamie’s will bequeathed $250,000to Ginger. On March 4, 2013, Ginger irrevocably disclaimed the $250,000 in writing,and, as a result, the property passed instead to Ginger’s sister Gertie. In 2013, Ginger gave$100,000 cash to her alma mater, State University. In 1996, Ginger had given ownershipof a life insurance policy on her own life to her daughter, Denise, and in 2013 Ginger paidthe $22,000 annual premium on the policy. In 2010, Ginger deposited $45,000 into abank account in the name of herself and son Stevie, joint tenants with rights of survivor-ship. Stevie deposited nothing. Neither party made a withdrawal until 2013, when Steviewithdrew $30,000. In 2013, Ginger created a trust with County Bank as trustee andtransferred $300,000 of stock to the irrevocable trust. She named her husband Greg (age47) to receive all the trust income semi-annually for life and daughter Drucilla to receivethe remainder. In 2013, she gave a remainder interest in her beach cottage to theAmerican Red Cross and kept the right to use the cottage rent free for the rest of her life.The fair market value of the cottage was $70,000.Other information: Ginger’s earlier taxable gifts are $175,000, all made in 1996.Ginger will make whatever elections are necessary to minimize her current gift tax liabil-ity. Assume the Sec. 7520 interest rate is 4%.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more