Rex is 75 years old. He has a lot of money and would like to minimize his estate

Question

Rex is 75 years old. He has a lot of money and would like to minimize his estate tax liability as much as possible. He has decided to give each of his children, grandchildren, and great-grandchildren a cash gift. How much can he give to each child and avoid gift tax liability A. $22,000 B. $11,000 C. $15,000 D. $10,000

“Probate” is best-defined as: a. Selecting the beneficiary of a trust fund after death of the donor . B. Supervising the transfer of property at death C. Choosing investments for a trust fund at death D.Administration of an estate following death of an individual

Explanation / Answer

Rex can gift upto $14,000 to each child and avoid gift tax liability. So, Rex can give B. $11,000 or D. $10,000 to each child and also avoid gift tax libility.

Probate is the legal process by which a probate court collects , verifies and indexes the decedent's assets, liquidates liabilities, pays necessary taxes and distributes remaining propoerty to heirs as per will when there is a will left or as per the laws of Decent and Distribution in the absence of a will.

Therefore , Option D best defines the term probate.

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