In the Current Year, Martha Makes the Transfers Below to Her

question 81

Essay

In the current year, Martha makes the transfers below to her husband, Ryan. What is the amount, if any, of her marital deduction?
a)In August, she gives him a house valued at $250,000.
b)In December, she gives him a 15-year income interest in a trust with the bank name as trustee. She names her son as the remainderman. The trust is irrevocable and is funded with $500,000 of assets, and 8% is the applicable interest rate.

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Definitions:

Entrepreneurial Leadership

A leadership style characterized by innovation, risk-taking, and a proactive approach to seizing opportunities and facing challenges.

Future Business Opportunities

Prospective markets or ventures that a company can explore to grow and achieve greater profitability.

Sensible Risks

Calculated actions taken with an awareness of the potential for a positive outcome, despite the presence of uncertainty.

Autocratic Style

A leadership style characterized by individual control over all decisions and little input from team members, often leading to quick decision-making but lower employee satisfaction.