After a Prolonged Illness,Claire Has Been Diagnosed as Having a Terminal

question 39

Multiple Choice

After a prolonged illness,Claire has been diagnosed as having a terminal illness.Which of the following procedures best improves her Federal gift and estate tax situation?

• A)She makes gifts to family members to help her estate qualify under § 6166 (extension of estate tax payments relative to an interest in a closely held business).
• B)She issues large notes made payable to loved ones to increase her future § 2053 deductions for claims against the estate.
• C)She makes gifts of her life insurance.
• D)She makes enough taxable gifts to keep from losing any of her $5 million gift tax exemption equivalent.
• E)None of the above.

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Definitions:

Resource Use

Refers to the way in which human societies utilize natural resources to fulfill their needs and wants.

Purely Competitive Conditions

Market situations in which a large number of firms produce identical products, and there is no single seller who can influence the market price.

Profit-maximizing Equilibrium

A state in which a firm achieves the highest possible profit, given its production costs and market conditions.