After a Prolonged Illness, Avery Has Been Diagnosed as Having

question 19

Multiple Choice

After a prolonged illness, Avery has been diagnosed as having a terminal illness, such that she will die in less than a year. Which of the following procedures best improves her Federal gift and estate tax situation?

• A)She issues large notes made payable to loved ones to increase her future § 2053 deductions for claims against the estate.
• B)She makes gifts of her life insurance.
• C)She makes enough taxable gifts to keep from losing any of her $5 million gift tax exemption equivalent.
• D)She makes a donation of cash to the building fund of her church.
• E)None of the above.

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Definitions:

Simple

Easily understood or done; presenting no difficulty, characterized by simplicity.

Lymph

A clear fluid that circulates in the lymphatic system, carrying immune cells and removing toxins and waste materials from bodily tissues.

Fibroblasts

Connective tissue cells that produce the fibers and the protein and carbohydrate complexes of the matrix of connective tissues.

Sweat Glands

Exocrine glands found in mammalian skin that secrete sweat, a fluid containing water and electrolytes, which helps regulate body temperature.