TAX Estates & Trusts Life Insurance

TAX 665 Module Six Short Paper Guidelines and Rubric A deceased client’s son walks into your office. His father’s life was insured for $10 million and he had $10 million in other assets in his estate at the time of death. Assuming the client had used none of his unified credit, had no deductions, and left his entire estate to his son, what should the client’s estate tax liability be? The client had purchased the policy many years ago and has been paying the premiums himself. What facts would have to change in order for the $10 million insurance proceeds to not be included in the father’s estate? For example, what specific incidents of ownership would the son need to have in his father’s policy? Cite appropriate statutory authority, case law, and/or AICPA Code of Conduct or ABA Model Rules of Professional Conduct to support your conclusions. Guidelines for Submission: Your paper must be submitted as a 2–3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one- inch margins, and at least three sources cited in APA format.

Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value

Client’s Estate Tax Liability

Meets “Proficient” criteria and the explanation is substantiated by the appropriate statutory authority, case law, and/or AICPA Code of Conduct or ABA Model Rules of Professional Conduct

Determines and explains what the client’s estate tax liability should be based on the assumptions posed in the prompt

Determines what the client’s estate tax liability should be but does not take every assumption posed in the prompt into account in determining the liability

Does not determine or explain what the client’s estate tax liability should be

30

Insurance Proceeds Meets “Proficient” criteria and the explanation is substantiated by the appropriate statutory authority, case law, and/or AICPA Code of Conduct or ABA Model Rules of Professional Conduct

Explains the facts that would have to change in order for the $10 million insurance proceeds to not be in the father’s estate

Explains the facts that would have to change in order for the $10 million insurance proceeds to not be in the father’s estate, but the facts are inaccurate and require more research

Does not explain the facts that would have to change in order for the $10 million insurance proceeds to not be in the father’s estate

30

Incidents of Ownership

Meets “Proficient” criteria and the specific incidents of ownership are substantiated by the appropriate statutory authority, case law, and/or AICPA Code of Conduct or ABA Model Rules of Professional Conduct

Identifies specific incidents of ownership that the son would need to have in his father’s policy

Identifies specific incidents of ownership that the son would need to have in his father’s policy, but submission lacks detail and requires more research

Does not identify specific incidents of ownership

30

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to- read format

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

10

Total 100%