Estate Tax Planning
Table of Contents

Course Learning Objectives. iii

Introduction to the Course. iii

Chapter 1 The Estate and Its Administration. 1

Chapter Learning Objectives. 1

Introduction. 1

The Probate Estate. 2

The Federal Gross Estate. 3

Property Owned at Death. 3

Property in Which Decedent Had Incidents of Ownership. 4

Life Insurance Proceeds. 5

The Executor and Administrator 6

Summary. 8

Chapter 1 Review Questions. 10

Chapter 2 Federal Gift and Estate Taxes. 11

Chapter Learning Objectives. 11

Introduction. 11

Economic Growth and Tax Relief Reconciliation Act 12

2010 Tax Act 12

2012 Tax Act 12

2017 Tax Act 12

Annual Gift Tax Exclusion. 13

Estate Tax Deductions. 14

Estate Tax Credits. 15

Estate Tax Portability Provision. 20

Summary. 20

Chapter 2 Review Questions. 22

Chapter 3 Common Estate Planning Trusts. 23

Chapter Learning Objectives. 23

Introduction. 23

Credit Shelter Trust 23

Credit Shelter Trusts vs. Portability. 27

QTIP Trust 27

Irrevocable Life Insurance Trust 29

Operation of an ILIT. 30

Funding the ILIT. 31

Summary. 34

Chapter 3 Review Questions. 35

Chapter 4 Calculating Federal Estate Taxes. 36

Chapter Learning Objectives. 36

Introduction. 36

Estate Tax Calculation. 36

The Gross Estate. 38

The Tentative Taxable Estate. 38

State Taxes Imposed at Death. 39

Adjusted Taxable Gifts Added to Taxable Estate. 39

The Tentative Estate Tax. 40

The Tax Credits. 40

Hypothetical Clients - Calculating the Estate Tax Liability. 42

Client #1 - George and Sheila Edwards. 42

Client #2 – Bill and Lori Bell 43

Click here to see Hypothetical Clients – Estate Tax Calculation. 44

Summary. 44

Chapter 4 Review Questions. 46

Chapter 5 State Death Taxes. 47

Chapter Learning Objectives. 47

Introduction. 47

Estate Taxation. 48

Inheritance Taxation. 48

Summary. 48

Chapter 5 Review Questions. 49

Chapter 6 Estate Tax Payment 50

Chapter Learning Objectives. 50

Introduction. 50

Paying Estate Taxes and Settlement Costs. 50

Use of Liquid Estate Assets. 50

Selling Illiquid Estate Assets. 51

Borrowing to Pay Taxes. 52

Using Life Insurance Death Benefits to Pay Taxes. 53

Summary. 54

Chapter 6 Review Questions. 55

Answers to Chapter Quizzes. 56

Chapter 1 Review Questions Feedback. 56

Chapter 2 Review Questions Feedback. 58

Chapter 3 Review Questions Feedback. 60

Hypothetical Clients – Estate Tax Calculation. 62

Chapter 4 Review Questions Feedback. 65

Chapter 5 Review Questions Feedback. 66

Chapter 6 Review Questions Feedback. 68

Index. 69

References. 71

Final Examination. 73

CPASelfstudy.com Course Evaluation. 79