Estate Planning Please provide the explanation with the answers. 1- What is the

Question

Estate Planning

Please provide the explanation with the answers.

1- What is the maximum amount that can be “ported” to Husband #2 if the DSUEA of deceased Husband #1 was $2.0 million and his wife remarries in 2013 to Husband #2 with her full exemption amount of $5.43 million available when wife dies in September 2015 and leaves everything to Husband #2, except for $1 million to her children?

(A)    $7.43 million

(B)    $6.43 million

(C)    $5.43 million

2- Same facts as Question 1, but what if Husband #2 has made significant lifetime gifts of $3 million to his children from a prior marriage, how much applicable credit will he have if he died in December 2015?

(A)    $7.43 million

(B)    $8.43 million

(C)    $2.43 million

Explanation / Answer

1) Answer - B 6.43 Million Wife's Exeption Amount 5.43 Deceased Husbands DSUEA 2 Less: Amount of Transfer Made to Children -1 Amount Poratable to Husband No.2 6.43 B 8.43 Million Husbands Total Exemption Amount 5 Add: DSUEA of Deceased Wife No.2 Ported 6.43 Less:Transfer Made to Children During Life -3 Total Credit Available 8.43

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