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Assignment 3

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Assignment #3:
Here are 3 gifts:
- A gift to a trust to go to "paying the salaries of police officers and firefighters"
- A gift "to the government of the United States"
- A gift to a trust to be used to maintain the premises of a public cemetery
Please discuss whether each of these gifts qualifies for the estate tax charitable
deduction. Please use case law and/or statutory law to establish your conclusion.
Please also discuss any important limitations that may be applicable to each deduction.
A gift to a trust to go to "paying the salaries of police officers and firefighters”
I.R.C. § 2055(a)(5) For purposes of the tax imposed by section 2001, the value of the
taxable estate shall be determined by deducting from the value of the gross estate the
amount of all bequests, legacies, devises, or transfers to an employee stock ownership
plan if such transfer qualifies as a qualified gratuitous transfer of qualified employer
securities within the meaning of section 664(g). This means that a gift to pay the
salaries of police officers and firefighters is applicable for the estate tax charitable
deduction.
A gift "to the government of the United States"
I.R.C. § 2055(a) (1) For purposes of the tax imposed by section 2001, the value of the
taxable estate shall be determined by deducting from the value of the gross estate the
amount of all bequests, legacies, devises, or transfers to or for the use of the United
States, any State, any political subdivision thereof, or the District of Columbia, for
exclusively public purposes. This means that it may qualify for the estate tax charitable
deduction provided that it is to benefit the public. For a gift to the government to be
acceptable, it has to be for the benefit of the public.
A gift to a trust to be used to maintain the premises of a public cemetery
I.R.C. § 2055(a)(2) For purposes of the tax imposed by section 2001, the value of the
taxable estate shall be determined by deducting from the value of the gross estate the
amount of all bequests, legacies, devises, or transfers to or for the use of any
corporation organized and operated exclusively for religious, charitable, scientific,
literary, or educational purposes. This means that the gift to a trust to be used to
maintain the premises of a public cemetery is acceptable provided it is for charitable,

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Assignment #3: Here are 3 gifts: - A gift to a trust to go to "paying the salaries of police officers and firefighters" - A gift "to the government of the United States" - A gift to a trust to be used to maintain the premises of a public cemetery Please discuss whether each of these gifts qualifies for the estate tax charitable deduction. Please use case law and/or statutory law to establish your conclusion. Please also discuss any important limitations that may be applicable to each deduction. A gift to a trust to go to "paying the salaries of police officers and firefighters” I.R.C. § 2 ...
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