2013 Mock Am Q2c

[cthesky]

Anyone can explain for this case, how is gift a better option compared to estate?
i understand the part that his grand daughter has a lower income tax bracket.
anyone can show a calculation explanation here?
very appreciated!

 

[cokemicho]

cthesky wrote:
Anyone can explain for this case, how is gift a better option compared to estate?
i understand the part that his grand daughter has a lower income tax bracket.
anyone can show a calculation explanation here?
very appreciated!

Hello my friend, I remember that question and almost no calculation is needed, a generation skipping strategy is the key to this answer. Remember that this avoid double taxation, (from grandpa to mother and then from mother to child)..
Hope this helps!!
Jorge