# VOLKOV, I need you

quick multiple choice format 1. Grantor moves assets into a GRAT. Value - pv of annuity > 0, gift taxes must be paid byâ€¦ a. grantor b. beneficiaries c. trust pays gift taxes 2. Regarding the income, during the life of the GRAT. Income tax can be paid byâ€¦ a. grantor b. beneficiaries c. can choose who pays income tax (defective or complete from income tax point of view) 3. At maturity, regarding estate tax a. no estate tax has to be paid by anybody (only if grantor has died) b. I am wrong and there is something else I am missingâ€¦ If you are not Volkov but you do know the answersâ€¦ PLEASE HELP Thanks a lot

Just a bid, but I go (A) Â© and (A)

Is gift tax part of the LOS?.. Iâ€™ve no idea about your problem, however, the article below might be helpful:) http://www.chamberlainlaw.com/assets/attachments/51.pdf I havent read it for I havent even looked thru the notes and should spend more time on that.

gift tax is included in some IPS questions, for return requirement calculations (for example, I remember the inger family where the father makes a gift of 15k p.a. to one of his sons, although I could be wrong, I am not sure). In that particular example, if I remember correctly (I donÂ´t have here the books), actually the father pays the gift tax for GRAT and other trust calculations, i donÂ´t expect this to be tested in the exam, is just to try to understand, because to be honest this one of the subjects that i will have to memorize, as i donÂ´t understand even 20% of this s*t

1. Grantor moves assets into a GRAT. Value - pv of annuity > 0, gift taxes must be paid byâ€¦ a. grantor b. beneficiaries c. trust pays gift taxes >> a 2. Regarding the income, during the life of the GRAT. Income tax can be paid byâ€¦ a. grantor b. beneficiaries c. can choose who pays income tax (defective or complete from income tax point of view) >> a or trust itself. Beneficiers cannot pay tax 3. At maturity, regarding estate tax >> you dont pay estate tax as long as you paid gift tax, but if you die before your GRAT maturies then there is a tax liability (dont remember exactly the case) everything said is IMHO and from my memory only a. no estate tax has to be paid by anybody (only if grantor has died) b. I am wrong and there is something else I am missingâ€¦

okâ€¦ so, if I got it: 1. beneficiaries donÂ´t pay anything (unless grantor dies) 2. income tax can be paid by the grantor or the trust 3. gift tax, if any, can only be paid by the grantor 4. no estate tax is paid by anybody (unless grantor dies) right?

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Wow! Hala_madrid you must be a wonderful friend and many thanks for went extra miles explaining all this to me!!! And Iâ€™d better go on with my notes now:( Good luck with your Exam!! hala_madrid Wrote: ------------------------------------------------------- > gift tax is included in some IPS questions, for > return requirement calculations (for example, I > remember the inger family where the father makes a > gift of 15k p.a. to one of his sons, although I > could be wrong, I am not sure). In that particular > example, if I remember correctly (I donÂ´t have > here the books), actually the father pays the gift > tax > > for GRAT and other trust calculations, i donÂ´t > expect this to be tested in the exam, is just to > try to understand, because to be honest this one > of the subjects that i will have to memorize, as i > donÂ´t understand even 20% of this s*t