At his wife Sabrina’s death, Dwayne disclaimed some assets bequeathed to him by will that were subsequently transferred from Sabrina’s estate to other beneficiaries:
· A $250,000 CD was transferred to a national wildlife sanctuary
· $5,340,000 was transferred to a trust for Dwayne and the children so that Dwayne could receive some income throughout his life, if needed. At Dwayne’s death the trust will terminate and corpus will be distributed to Ellis the children.
· A money market account of $1 million was transferred to Sabrina’s son.
· A stock portfolio worth $1 million was transferred to Sabrina’s daughter.
How did these transfers affect Sabrina’s estate tax? Which of these are the correct answers?
a. Sabrina’s estate received a charitable deduction for the CD given to charity
b. Sabrina’s estate received a marital deduction for the property transferred to the trust.
c. The assets transferred to her children were taxed in Sabrina’s estate
d. All of the property disclaimed by Dwayne received a marital deduction in Sabrina’s estate.