Common use of Estate and Gift Tax Clause in Contracts

Estate and Gift Tax. The designation of a beneficiary to receive beneficiary is required to remove all assets from the SIMPLE IRA SIMPLE IRA distributions upon your death, will not be considered by December 31 of the fifth year following the year of your death a transfer of property for federal gift tax purposes. Upon your (the five-year rule). If you die on or after your RBD, such a death, the value of all assets remaining in your SIMPLE IRA will be beneficiary must use your remaining single life expectancy to included in your gross estate for estate tax purposes, regardless of calculate the RMD. Your remaining single life expectancy divisor is the named beneficiary or manner of distribution. There is no determined in the year of your death using your age at the end of specific estate tax exclusion for assets held within a SIMPLE IRA. that year and then reducing the divisor by one for each subsequent After your death, beneficiaries should pay careful attention to the year's calculation. rules for the disclaiming any portion of your SIMPLE IRA under

Estate and Gift Tax. The designation of a beneficiary to receive beneficiary is required to remove all assets from the SIMPLE IRA XXX SIMPLE IRA XXX distributions upon your death, will not be considered by December 31 of the fifth year following the year of your death a transfer of property for federal gift tax purposes. Upon your (the five-year rule). If you die on or after your RBD, such a death, the value of all assets remaining in your SIMPLE IRA XXX will be beneficiary must use your remaining single life expectancy to included in your gross estate for estate tax purposes, regardless of calculate the RMD. Your remaining single life expectancy divisor is the named beneficiary or manner of distribution. There is no determined in the year of your death using your age at the end of specific estate tax exclusion for assets held within a SIMPLE IRAXXX. that year and then reducing the divisor by one for each subsequent After your death, beneficiaries should pay careful attention to the year's calculation. rules for the disclaiming any portion of your SIMPLE IRA XXX under