In Each of the Following Independent Situations,describe the Effect of the Disclaimer

question 135

Essay

In each of the following independent situations,describe the effect of the disclaimer procedure on Jacob's taxable estate.In this regard,advise as to how much should be disclaimed,by whom,and whether a disclaimer should be made,for the death in 2008.
a.Jacob's will leaves $2,500,000 to his adult son and the remainder ($500,000) to Susan (Jacob's surviving wife).
b.Jacob's will leaves $2,500,000 to Susan (Jacob's surviving wife) and the remainder ($1,000,000) to his adult son.
c.Jacob's will leaves $2,500,000 to Susan (Jacob's surviving spouse) and the remainder ($500,000) to a qualified charity.
d.Jacob's will leaves $2,000,000 to Susan (Jacob's surviving spouse) and the remainder ($500,000) to a qualified charity. Included in the $2,000,000 scheduled to pass to Susan is an antique gun collection valued at $300,000. Susan abhors firearms.

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Definitions:

Follow-Up

The action of maintaining contact with someone or continuing an activity to ensure completion or further progress.

Not-for-Profit Organizations

Organizations that operate for purposes other than making a profit, often focused on social, educational, or charitable activities.

General Corporations

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Capital Item

Long-lasting goods that a firm acquires and uses in the production of other goods or services that have a life span extending beyond one year.