Letter on Irrevocable Trusts, Gifts Tax, and Estate Tax
Suppose you are a CPA, and your client has
requested advice regarding establishing an irrevocable trust for his two (2)
grandchildren. He wants the income from the trust paid to the children for 20
years and the principal distributed to the children at the end of 20 years.
Use the Internet and Strayer databases to
research the rules regarding irrevocable trusts, gift tax, and estate tax. Be
sure to use the six (6) step tax research process in Chapter 1 and demonstrated
in Appendix A of your textbook (Prentice Hall’s Federal Taxation 2015) as a
guide for your written response.
Write a one to two (1-2) page letter in which
the effect of an irrevocable trust on the gift tax and future estate
other significant alternatives that the client could use both to reduce
estate tax and to maximize potential advantages of the payment of gift
taxes on transfers of property.
- Use the
six (6) step tax research process, located in Chapter 1 and demonstrated
in Appendix A of the textbook, to record your research for communications
to the client.
Your assignment must follow these formatting
typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
a cover page containing the title of the assignment, the student’s name,
the professor’s name, the course title, and the date. The cover page and
the reference page are not included in the required assignment page
The specific course learning outcomes
associated with this assignment are:
client, internal, and administrative documents that appropriately convey
the results of tax research and planning.
- Create an
approach to tax research that results in credible and current resources.
tax issues regarding the gift tax and the estate tax.
tax issues regarding trusts and estates.
technology and information resources to research issues in organizational
tax research and planning.
clearly and concisely about organizational tax research and planning using
proper writing mechanics.
six (6) step tax research process in Chapter 1:
the issues (questions).
the applicable authorities.
the authorities and choose those to follow where the authorities conflict.
the facts in terms of the applicable authorities.
conclusions and recommendations to the client.