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Howard had the following assets at death.  What is the amount of his gross estate if Howard dies today?  Round to 2 decimal places. Residence JTWROS with his wife                                  $[house] Common Stock  Howard sole owner                             $250,000 Municipal Bonds   Howard sole owner                         $150,000 Life Insurance on Howard’s life Howard owner           $500,000 death benefit   $150,000 cash value Mutual fund  Wife is sole  owner                                   $50,000

John died and left his surviving spouse Sharon.  John’s estate was only $2,000,000 in 2024.  Is there any reason that Sharon should file an estate tax return for John?

Joe (age 63)  established a trust and named his wife, Amy (age 40) as income beneficiary for 20 years.   After 20 years, Joe’s grandson Luke (age 22) and grandnephew  John (age 22) are to receive income.  After Luke and John die the remainder passes to Joe’s great granddaughter Misty (age 1).  Luke died 20 years after the trust was established and John dies 33 years after the trust was established.  How many times is the generation-skipping transfer tax levied?

Javier is married to Maria and they have two children Jose and Alejandra.  Javier created a will that leaves everything to Maria.  If Maria predeceases him, his estate will go to Jose and Alejandra.  Javier dies and Maria is still alive.   They have the following assets.  How much will Maria get from Javier’s estate? Asset Value Title House $[house] Tenancy in common Javier and Maria Life Insurance on Javier’s life with Javier as owner and insured $[jinsurance] death benefit $40,000 cash value Beneficiaries:  Maria 50%, Jose 25%, Alejandra 25% Checking account in Javier’s name  $[jchecking] Sole ownership Checking account in Javier and Maria’s name $[jmchecking] Joint tenancy with rights of survivorship

Javier is married to Maria and they have two children Jose and Alejandra.  Javier created a will that leaves everything to Maria.  If Maria predeceases him, his estate will go to Jose and Alejandra.  Javier dies and Maria is still alive.   What is the amount of Javier’s estate? Asset Value Title House $[house] Tenancy in common Javier and Maria Life Insurance on Javier’s life with Javier as owner and insured $[jinsurance] death benefit $[jcash] cash value Beneficiaries:  Maria 50%, Jose 25%, Alejandra 25% Checking account in Javier’s name  $[jchecking] Sole ownership Life Insurance with Javier as owner and Maria as insured $[minsurance] death benefit $[mcash] cash value Beneficiaries:  Javier 50%, Jose 25%, Alejandra 25% Checking account in Javier and Maria’s name $[jmchecking] Joint tenancy with rights of survivorship

Sheri has the following assets when she dies.  What is the size of her probate estate? Asset Value Title 401(k) $[retire] No beneficiary designation IRA $[ira] Sister Janet is beneficiary Life Insurance on Sheri’s life $[life] death benefit $32000 cash value Beneficiary is mother who died last year House  $[house] Tenants in common with her sister Janet Checking account $[checking] POD her sister Janet Investment account $[invest] TOD her sister Janet

John wants to save for his daughter Shar’s graduate school.  She will begin school in [years]years.  He believes she will be in school for 2 years.  Shar wants to go to UCLA which will cost $[cost] per year.  He estimates his investment returns to be 6.5% per year.  He is estimating inflation to be 5% per year.  How much does he need to put aside today to fund her graduate school?  (use 2 decimal places).

Jean wants to save enough for her grandson to go to college at an expensive University on the East Coast.  She anticipates that tuition will run in excess of $50,000  per year for 4 years.  She has heard about 529 plans and the concept of gift splitting. Jean is married.  What is the maximum amount she could put in a 529 plan in a single year if she files a gift tax return and DOES NOT use gift splitting.  Assume 2024 tax code.

You have a tentative tax base of $[taxbase].  Assume the following estate tax rates for 2024. What is the tentative tax?     Estates in this range You pay PLUS excess above lower end of range $0 – $10,000 0 18% $10,000 to $20,000 $1,800 20% $20,000 to $40,000 $3,800 22% $40,000 to $60,000 $8,200 24% $60,000 to $80,000 $13,000 26% $80,000 to $100,000 $18,200 28% $100,000 to $150,000 $23,800 30% $150,000 to $250,000 $38,800 32% $250,000 to $500,000 $70,800 34% $500,000 to $750,000 $155,800 37% $750,000 to $1,000,000 $248,300 39% Over $1,000,000 $345,800 40%

Maria has 2 children both starting college in the next 5 years.  She wants to know how much she should have saved for their education at this point.  Rebecca will begin college in 5 years and will remain in college for 4 years.  Maria estimates her tuition will be $[rebecca] per year and increase with inflation.  Ben will start 1 year later and remain in college for 4 years.  Maria estimates his tuition will be $[ben] per year and increase with inflation.  Maria believes she can get  a 7% return on her investments and expects inflation to be 4%.  How much should she have saved today to cover these education expenses?