Ask Question
28 July, 20:29

You have clients John and Anna in your office. They are married, both age 65. John and Anna own 480 acres of farmland, worth about $1,500,000 plus approximately $500,000 other assets, mostly cash and investments. They have 3 adult children. Two of the children are happily married and financially stable, but the third child, Henry, is having financial problems and probably will be divorced within the next year. John and Anna want advice about how to structure their estate plan, they ask specifically about gifting the assets to the children, establishing either a revocable or irrevocable trust, a life estate, or a transfer on death deed. While they want the children to share equally, they are concerned about Henry's situation, and want protection from his soon to be ex spouse and his creditors. Advise John and Anna on what options they have.

+5
Answers (1)
  1. 28 July, 23:39
    0
    Answer: Major part of share should be given to henry and the rest should be given to other children.

    Explanation: In the given case, Henry is going to get divorced next year hence if he gets to have his part of share today, he have to split the half with his wife after the divorce.

    Thus, Anna and John should gift the major part to Henry as he is suffering from financial crisis and leave the remaining portion for other two kids. Also the division should be done only after the divorce of Henry and as a gift so that he did not need to pay the tax.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You have clients John and Anna in your office. They are married, both age 65. John and Anna own 480 acres of farmland, worth about ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers