Eric, Age 80, Has Accumulated About $6 Million in Net

question 85

Multiple Choice

Eric, age 80, has accumulated about $6 million in net assets. Among his assets are the following marketable securities held as investments. Eric would like to donate (either by lifetime or testamentary transfer) $250,000 in value to his church. In addition, to consummate a land deal, he needs $250,000 in cash. Looking solely to tax: considerations and using only the assets described above, Eric's best choice is to:

• A) Donate by gift to the church the Crane stock and sell the Hawk stock now.
• B) Donate by death to the church the Hawk stock and sell the Cardinal stock now.
• C) Donate by gift to the church the Hawk stock and sell the Crane stock now.
• D) Donate by gift to the church the Cardinal stock and sell the Hawk stock now.
• E) None of the above is an attractive technique.

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Definitions:

Understand Messages

The process by which an individual comprehends the meaning and intent of communicated information.

Eliminate Conflict

The process of resolving disagreements or disputes to achieve harmony in a relationship or environment.

Opposing Views

Differing opinions or perspectives on a particular issue, highlighting the variety and conflict in viewpoints.

Active Listening

The practice of paying full attention, understanding, responding to, and remembering what is being said.