Arthur,age 99,holds Some Stock Purchased Many Years Ago for $10,000

question 26

Multiple Choice

Arthur,age 99,holds some stock purchased many years ago for $10,000 which is now worth $100,000.He is trying to plan for the eventual disposition of this stock.Arthur's only remaining family member is his grandson.For income tax purposes,Arthur should

• A)sell the stock and gift the proceeds to his grandson.
• B)gift the stock to his grandson.
• C)leave the stock to his grandson as an inheritance.
• D)All of the above will result in the same income tax consequences.

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Definitions:

Erikson

A psychologist known for his theory on the psychological development of human beings, which consists of eight stages from infancy to adulthood.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Generativity

A stage of adult development involving concern for establishing and guiding the next generation.

Physical Development

The process that begins in human infancy and continues into late adolescent concentrating on gross and fine motor skills as well as puberty.