Mary Johnson Dies Early in the Current Year

question 44

Essay

Mary Johnson dies early in the current year.All her property passes subject to her will,which states that all of her property is to go to a QTIP trust for Dan for life with the remainder to their children.Mary's gross estate is about $5 million,and her Sec.2053 deductions are very small.Dan,who is in poor health,already owns about $3 million of property.What tax issues should Dan Johnson and the estate's executor consider with respect to the property that passes to the QTIP trust?

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Definitions:

EPA Standards

Regulations set by the Environmental Protection Agency aimed at protecting human health and the environment.

Water Systems

Infrastructure and resources designed for the delivery, treatment, and distribution of water for consumption, sanitation, and irrigation.

Drinking Water

Water that is safe to drink or to use for food preparation, treated to remove contaminants and pathogens.

Edge City

A term for a concentrated area of business, shopping, and entertainment outside a traditional downtown or urban core.