John Was the Oldest of Three Boys

question 77

Essay

John was the oldest of three boys.John's mother was single,elderly,and owned her own home.Her primary concern was leaving her home to her children and minimizing taxes.John was an attorney and a certified public accountant.John told his mother that he would draw up a trust arrangement whereby she would live in the home as long as she was able to,and at that point (or upon her death if she lived in the home at that point),the home would be transferred to her three children,with John in charge of selling it,either to an outsider or to one of her three children.When his mother moved to an apartment,it was discovered that the trust transferred the house to John only.Discuss this situation.

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Definitions:

FICA Tax

A U.S. federal payroll tax that funds Social Security and Medicare, requiring contributions from both employers and employees.

FUTA Tax

A federal tax in the United States imposed on employers to fund state workforce agencies and unemployment insurance.

Net Pay

Net pay is the amount of money an employee takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.

Unemployment Insurance

A government program that provides financial assistance to eligible workers who are unemployed through no fault of their own, offering temporary income support.