Question: Please discuss how the Income-tax basis of property received by gift differs from the income tax basis of property received by inheritance. From your aforementioned analysis, please explain which situation is more advantageous to the recipient of such a wealth transfer. (Half Page Single Spaced)
The treatment of life insurance for wealth transfer tax purposes is very much a function of the life insurance policy's incidents of ownership. Please describe, some of the life insurance planning strategies designed to mitigate any unexpected wealth transfer tax issues associated with life insurance ownership. (half page single spaced)
There are 4 legal documents that are important for the taxpayer to maintain: 1) wills, 2) medical powers of attorney, 3) physicians directives and general powers of attorney. Briefly, compare and contrast these legal documents and their relative importance to the makers of said documents. (half page single spaced)
Briefly, compare and contrast the following retirement vehicles:
1) Defined Benefit Plans Versus Defined Contribution Plans,
2) Traditional IRA plans versus Roth IRA plans and
3) 401(K) plans versus 403(b) plans.
In your analysis, please discuss
1) by whom the plans are funded (e.g., solely by the taxpayer, by an employer, some combination of both etc.),
2) whether the contributions to the plan are tax-deductible by the taxpayer or employer, and
3) the maximum contribution limits to the plan (use the 2015 limits), and
4) when distributions can be taken from the plan without penalty to the taxpayer. (half page single spaced)