Dustin owns all of the stock of Gold Corporation which includes both common and preferred shares. The preferred stock is noncumulative, has no redemption date, and possesses no liquidation preference. In 1995, Dustin makes a gift to his adult children of all of the common stock. He dies in 2011 still owning the preferred stock. The value of the Gold stock on the relevant dates is:
One of the tax consequences of this estate freeze is:
A) Dustin's gross estate includes $0 as to the stock.
B) Dustin's gross estate includes $5,000,000 as to the stock.
C) Dustin made a gift of $400,000 in 1995.
D) Dustin made a gift of $3,400,000 in 1995.
E) None of the above is correct.
Correct Answer:
Verified
Q61: At the time of his death, Harvey
Q63: Which, if any, of the following statements
Q64: At the time of Rick's death, he
Q65: Which, if any, of the following statements
Q68: Which of the following independent statements correctly
Q69: In 2011, Pam makes a gift of
Q70: In 2011, Valerie made a gift of
Q73: In a typical estate freeze involving family
Q76: Which, if any, of the items listed
Q80: In a typical "estate freeze" involving stock:
A)The
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents