1 2033 n interest in property owned individually

1

2033

Interest in property owned individually

2

2036, 2037, 2038

“… in contemplation of or intended to take effect in possession or enjoyment at or after his death …”

3

2036

W

Inc. to H, life, then Inc. to W, life, then Rem. to children

Trust

4

2036

G

Inc. to G, life, then Rem. to children

Trust

5

2036

1) Transfer by decedent

2) Retention for the prohibited time, of

3) (a) (1), (2)

6

2036

Prohibited timeLifeNot ascertainable without reference

to deathDoes not in fact end before death

7

2036

(a) (1) possession, enjoyment or income

(a) (2) control, designate personsalone or in conjunction with

(b) anti-Bynum rule

8

2036

1984 - SP $270,000Gift (20,000)Mtg. $250,000

1985 - forgave $20,000 1986 - forgave $20,000 7/86- dies 12/86 - sold $550,000

9

2036

A B

Reciprocal trust doctrine applies to all interests and powers

Inc. BRem. to B’s children

Inc. ARem. to A’s children

10

2038

Alter, amend, revoke or terminate Alone or in conjunction with UGMA /UTMA Living trust Removal and replacement of trustee Reciprocal trust

11

2041 Power of Appointment

S1

S2 Inc.T-ee InvadeChildren Rem.

S2 Test. P/A ChildrenS2 5 & 5S2 Appt. to selfS2 Test. P/A

12

2041 Power of Appointment

General Special / Limited

13

2039 Annuities

Concept Single life / no balance Single life / balance Self and survivor Joint and survivor

Contributions and wealth transfer Employee status 2056

14

2039 Annuities

Amt. Incl. =

D’s contrib.Annuity value

Purchase PriceX

15

2040 Joint Interests

Tenancy in Common Joint Tenancy

Convenience v. property interestPOA Acct. v. JTROS

Tenancy by Entireties Community Property

16

2040 Joint Interests

2040(a)Contribution test

2040(b)One-halfGallenstein

17

2040 Joint Interests

Amt. Excl. =

Survivor’s consid.Value

Total consid.X

18

2042 Life Insurance

Protection Liquidity Wealth Creation Wealth Replacement Term v. Permanent

19

2042 Life Insurance

receivable by executor incidents of ownership

20

2035 Gifts/3 Years of Death

Seldom applies, BUT Gift tax inclusion inadequate Life insurance Revocable trusts