Trust And Estate Tax Planning Strategies Practice Test

An individual wants to transfer $8,000,000 of appreciating assets to descendants and is evaluating whether to make gifts now or at death. The individual expects the assets to double over the next 10 years. Under IRC §§ 2001, 2010, and 2501, which strategy would best minimize estate tax liability assuming the individual has sufficient lifetime exemption available and wants to remove future appreciation from the taxable estate?

A decedent’s taxable estate is $14,500,000 and includes $5,000,000 of stock in a family operating company. The executor is considering a charitable remainder trust (CRT) funded at death to benefit children for life with remainder to charity. Under IRC § 2055 and § 664, which planning approach is most tax-efficient to obtain an estate tax charitable deduction while providing an income stream to noncharitable beneficiaries?