Dora and Jeb are married and have adult children.Dora has assets worth $7 million,while Jeb's wealth is negligible.Both are aged and infirm,but Dora is expected to predecease Jeb.Which is the family's best estate planning idea?

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Quizplus · Accepted Answer

Option E ensures that Dora's full $7 million estate tax exemption is utilized, as she leaves $3.5 million to each of her beneficiaries, which means there will be no federal estate tax paid on her estate. Additionally, leaving an equal amount to both Jeb and the children will ensure that Jeb has some financial security for the remainder of his life, while also providing for the children's inheritance. By having Jeb leave his $3.5 million to the children, there will be no estate tax paid on his estate either since he can utilize his own estate tax exemption. This option provides the best balance between estate tax planning and ensuring financial security for both Jeb and their adult children.

Dora and Jeb Are Married and Have Adult Children