Walter Passed Away This Year at the Age of 62

question 2

Essay

Walter passed away this year at the age of 62.
Previously, Walter had structured his will so that his wife would receive $80,000 in cash, and she would also receive his stocks and land to be held in a trust on he behalf. Additionally, Walter's 33 year old son, Steven, would receive a building t be held in a trust until Steven reached the age of 45.
The assets transferred to Walter's wife consist of a piece of land with an ACB of
$100,000 and a FMV of $300,000; and stocks valued at $200,000, with a cost base of $150,000.
The assets transferred to Steven consist of a building with an ACB of $200,000, UCC of $180,000, and a FMV of $300,000.
Required:
What are the tax consequences that will be recognized on Walter's tax return? Show all calculations.
What are the tax consequences for the assets transferred to Walter's wife?
What are the immediate tax consequences from the asset transfers to Walter's son Steven?

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Definitions:

Unenforceable Agreement

A contract or agreement that, due to certain defects or legal deficiencies, cannot be legally enforced or compelled by a court.

Compensatory Damages

Financial compensation awarded to a plaintiff to redress the loss or injury that has been suffered.

Punitive Damages

Monetary compensation awarded to an injured party that goes beyond what is necessary to compensate for losses and is intended to punish the wrongdoer.

Unconscionable

Something that is shockingly unfair or unjust, often used in a legal context to describe terms that are extremely one-sided.