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Question 1;Before her death in 2009, Lucy entered into the following transactions.;a. In 2000, Lucy borrowed $600,000 from her brother, Irwin, so that Lucy could start a business. The loan was on open account, and no interest or due date was provided for. Under applicable state law, collection on the loan was barred by the statute of limitations before Lucy died. Because the family thought that Irwin should recover his funds, the executor of the estate paid him $600,000.;b. In 2007, she borrowed $300,000 from a bank and promptly loaned that sum to her controlled corporation. The executor of Lucy?s estate repaid the bank loan, but never attempted to collect the amount due Lucy from the corporation.;c. In 2008, Lucy promised her sister, Ida, a bequest of $500,000 if Ida would move in with her and care for her during an illness (which eventually proved to be terminal). Lucy never kept her promise, as her will was silent on any bequest to Ida. After Lucy?s death, Ida sued the estate and eventually recovered $600,000 for breach of contract.;d. One of the assets in Lucy?s estate was a palatial residence that passed to George under a specific provision of the will. George did not want the residence, preferring cash instead. Per George?s instructions, the residence was sold. Expenses incurred in connection with the sale were claimed as ? 2053 expenses on Form 706 filed by Lucy?s estate.;e. Before her death, Lucy incurred and paid certain medical expenses but did not have the opportunity to file a claim for partial reimbursement from her insurance company. After her death, the claim was filed by Lucy?s executor, and the reimbursement was paid to the estate.;Discuss the estate and income tax ramifications of each of these transactions.;Question 2;Which of the following itmes ofproperty can e owned in a joint tenancy?;Stocks, Bonds, Art, Jewelry, CAr, House, Cottage, Condominium, Boat Contents of a safe deposit box.;Question 3;1. Susan Sowles, a resident of New York, dies without a will. If she has a lakewhore cottage in New York and her heirs are her three children, what form of onwership of the cittage results for their benefit?;2. If Mary Main, also a resident of New York, dies with a will that transfers her homestead to her two nephews, who are the executorsof her estate, what form of onwership exists between the nephews in New York and in your state?


Paper#75667 | Written in 18-Jul-2015

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