Michael Moriarty, a Widower, Is Quite Elderly and Is Beginning

question 25

Essay

Michael Moriarty, a widower, is quite elderly and is beginning to do some estate planning. His goal is to reduce his transfer taxes. He is considering purchasing land with a high potential for appreciation and owning it with his grandson as joint tenants with rights of survivorship. Michael would provide all of the consideration, estimated to be about 11.5 million. What tax issues should Michael Moriarty consider with respect to the purchase of the land?

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Definitions:

Potential Risk

The possibility of an event occurring that could negatively affect the accomplishment of objectives.

Potential Impact

A possible effect or outcome that a specific action or event might have on something or someone.

Direct Correlation

A relationship between two variables where an increase or decrease in one variable directly causes the same change in the second variable.

Complexity

The degree to which a project or task is complicated, often influenced by the number of interrelated components, variability, and uncertainty.