Jamie Is Terminally Ill and Does Not Expect to Live

question 108

Essay

Jamie is terminally ill and does not expect to live much longer. Pondering the consequences of her estate, she decides how to allocate her property to her nephews. She makes a gift of depreciated property (i.e., adjusted basis exceeds fair market value) to Will, a gift of appreciated property (i.e., fair market value exceeds adjusted basis) to Jim, and leaves appreciated property to Sam in her will. Each of the properties has the same fair market value. From an income tax perspective, which nephew is her favorite?

---

Definitions:

Grocery Manufacturer

A grocery manufacturer refers to a company that produces food products and goods sold in grocery stores and supermarkets.

Commission

A form of compensation typically in the sales field, where an employee is paid a percentage of the sales they generate or deals they close.

Manufacturer's Branch Office

An office or division of a manufacturing company located separately from its main operations, typically to perform regional functions like sales, support, or distribution.

Full-Service Wholesaler

A wholesaling entity that provides a wide range of services to its customers, including storage, delivery, and product and market information.