Eric,age 80,has Accumulated About $6 Million in Net Assets

question 135

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:

RUPA

stands for the Revised Uniform Partnership Act, which governs the operation of partnerships in the United States.

Winding Up

In partnership and corporation law, the orderly liquidation of the business’s assets.

Nonwrongful Dissociation

The act of separating oneself from a partnership, company, or other legal entity without breaching the terms of the agreement or engaging in improper conduct.

Past Debts

Obligations or amounts of money owed that were incurred in the past.