Gift and Estate Tax

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Question

What property is included in the gross estate?

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Answer

FMV of property owned or controlled at death.

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Question

Why is a bypass trust used in estate planning?

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Answer

To preserve both spouses' exclusions while using the marital deduction.

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Question

How does an ILIT keep life insurance out of the gross estate?

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Answer

It removes incidents of ownership from the insured.

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Question

What is the GST tax designed to prevent?

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Answer

Avoiding estate tax by skipping a generation.

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