In the Current Year, Martha Makes the Transfers Below to Her

question 81

Essay

In the current year, Martha makes the transfers below to her husband, Ryan. What is the amount, if any, of her marital deduction?
a)In August, she gives him a house valued at $250,000.
b)In December, she gives him a 15-year income interest in a trust with the bank name as trustee. She names her son as the remainderman. The trust is irrevocable and is funded with $500,000 of assets, and 8% is the applicable interest rate.

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Definitions:

Hospital Insurance (HI)

A form of healthcare insurance that covers medical and surgical expenses incurred in a hospital, often part of broader national or private health insurance plans.

Matching Social Security

Matching Social Security is the process where employers contribute an amount equal to the Social Security taxes withheld from their employees' wages, as part of the federal Social Security program.

Old Age Survivors and Disability Insurance (OASDI)

A federal program in the United States that provides benefits to retired individuals, survivors of insured workers, and disabled individuals.

Hospital Insurance (HI)

A form of health insurance that covers hospitalization, certain types of surgery, and additional inpatient services.