Estate Tax Law and Valuation: Buy-Sell agreement: Buy-Sell agreement: This agreement is utilized to protect the decedent’s spouse or family, fix the value of the business interest for estate tax purposes and preserve business management. So long as the agreement is a true business agreement and not a device to pass property at less than…
Husband and wife: For a husband and wife, there is an unlimited marital deduction available that will allow property of the first spouse to die to pass to the surviving spouse without the payment of estate tax, thus preserving the property to support the survivor. To the extent that the assets are not consumed, they may…
ESTATE TAX Husband and wife estate tax, continued Terminal interests: A terminal interest is one that terminates upon the lapse of time or the happening or failure to happen of some event or contingency, if any remaining property passes to a person other than the surviving spouse. If the surviving spouse receives a terminable interest…
ESTATE TAX Valuation continued: Listed securities: The mean between the day’s highs and lows on the valuation date is used. If the shares are sold ex-dividend, the amount that the estate will receive is used. The valuation of bonds includes the interest to the valuation date. Restrictions to or an impediment to sale can result…
The unified tax on transfers has three parts: gift tax(for transfers made during life), estate tax(for transfers made at death) and generation-skipping tax(for transfers that skip a generation). The gift and estate taxes are imposed on an individual for gifts during life and on his or her estate for transfers at death based upon the…
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