Accounting 6357 Section 001

Federal Estate and Gift Taxation

Fall 2005
University of Texas at Dallas
Instructor: Christine Martinez, I.R.S. Attorney (Estate Tax)
Office: UTD Email:
UTD telephone: IRS Office 817-759-2900 Ext. 6201
Email: christine.martinez@irs.gov Home: 817-446-7287
Office Hours: TBA Email: cmart69486@aol.com

Course Materials

Required: -Stephens, Maxfield, Lind & Calfee, Federal Estate and Gift Taxation,
8th ed., 2002. -Study Problems Workbook. Supplement.
-Federal Estate & Gift Tax Code and Regulations (CCH 2004) or latest update

Course Coverage

A comprehensive study of the principles and procedures involved in determining the

federal estate, gift, and generation-skipping transfer taxes. This course studies these taxes
and introduces fundamental estate planning techniques in light of the impact of these
taxes. The taxability and valuation of property and the determination of deduction and
credits will also be covered.

The main objective of this course is to provide the student with an in-depth examination of
these taxes with emphasis on research, planning, and problem solving using the Internal
Revenue code, Regulations, cases, treatises and other authoritative sources of the law. The
preparation of an estate and gift tax return will be part of this study.

Approach to Study of Estate and Gift Tax

This course will be taught primarily from a problem solving perspective. As will be
explained in the first class. The problem method of instruction is particularly well suited
to the study of tax. The required course materials are designed deliberately for use with
the problem method.

Class assignments are made by reference to the study problems (where more detailed
assignments are found). Each problem requires reading from your text in conjunction
with the study of code sections and regulations. The expected level of comprehension is
best approximated by the assigned questions in the problem book. You may wish to
survey those questions prior to beginning the reading. Occasionally material not assigned
here will be addressed by lecture as a means of broadening course coverage. In such
cases, some additional reading may be assigned.
 Grading System

Maximum Points

1. Two tests (100 points) 200

2. Preparation of tax returns 100

Total points 300

Tax returns: Information concerning the tax returns will be presented at the appropriate
time during the course. The returns will be take-home assignments.

Class participation: Students should read the assigned chapter and complete the assigned
problems prior to class and participate in class discussion. The final grade for the course
may be enhanced as a result of class participation.

Final Examination: The final examination is comprehensive.

General Information

1. Make-up policy:
Only for very compelling reasons will a make-up test be allowed.
2. Prerequisites: n/a
3. University Policy on Cheating:

Students are expected to be above reproach in all scholastic activities. Students who
engage in scholastic dishonesty are subject to disciplinary penalties, including the
possibility of failure in the course and dismissal from the University.

“Scholastic dishonesty includes, but is not limited to, cheating, plagiarism,

collusion, the submission for credit or work of materials that are attributable in
whole or in part to another person, taking an examination for another person, any
act designed to give unfair advantage to a student or the attempt to commit such
acts.” Rules and Regulations, Part One, Chapter VI, Section 3, Subsection 3.2,
Subdivision 3.22.

Since scholastic dishonest harms the individual, all students and the integrity of the
University, policies on scholastic dishonesty will be strictly enforced.

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 Assignments

AN INTRODUCTION TO PROPERTY LAW

General discussion of state and federal property laws. Reading materials will be
provided in class.

AN OVERVIEW OF WEALTH TRANSFER TAXATION

Chapters 1-3: Problem No.1 Read the assignment for Problem 1, but do not
answer the questions. This Problem will be covered by lecture and in-class
hypotheticals.

PROPERTY OWNED AT DEATH – Section 2033, 2034

Chapter 4-4.06: Problem No. 2

GIFTS WITHIN THREE YEARS OF DEATH – Section 2035

Chapter 4.07: Problem No. 3

RETAINED LIFE ESTATES – Section 2036,

Chapter 4.08: Problem No. 4

REVOCABLE TRANSFERS – Section 2038

Chapter 4.10: Problem No. 6

JOINTLY OWNED PROPERTY – Section 2040

Chapter 4.12: Problem No. 8

POWERS OF APPOINTMENT – Section 2041

Chapter 4.13: Problem No. 9

LIFE INSURANCE – Section 2042

Chapter 4.14: Problem No. 10

ALTERNATE VALUATION DATE AND FARM/BUSINESS VALUATION

Chapter 4.03-4.04: Problem No. 11 Section 2032A

Mid-term Exam

THE DEDUCTIONS FOR EXPENSES, DEBTS AND CLAIMS – Section 2053

Chapter 5.01-5.04: Problem No. 12

THE CHARITABLE DEDUCTION – Section 2055

Chapter 5.05: Problem No. 13

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 THE MARITAL DEDUCTION – Section 2056
Chapter 5.06: Problem No. 14

ESTATE TAX CREDITS – Section 2010

Chapter 3.01-3.05: Problem No. 15

TRANSFERS SUBJECT TO GIFT TAX

Chapter 9.01-9.02, 10.01: Problem No. 16

VALUATION OF GIFTS
Chapter 19.03: Problem No. 17
Chapter 10.02: Problem No. 18

DISCLAIMER AND THE GIFT TAX EXCLUSIONS

Skim material concerning sections 2043 and 2516
Chapter 10.06-10.07: Problem No. 20 (omit questions 1 and 2)
Chapter 9.05: Problem No. 21 (omit questions 4(f)-(h))

GIFT SPLITTING & GIFT TAX COMPUTATION

Chapter 9.03-9.06, 10.03: Problem 23

THE COMBINED OPERATION OF THE ESTATE TAX & THE GIFT TAX
Chapter 2.01, 3.02, 9.03, 9.05: Problem 24

THE GENERATION-SKIPPING TRANSFER TAX

Chapter 12 and 13 of Stephens, Maxfield, Lind & Calfee. This topic will be
covered briefly by lecture and in-class hypotheticals to be handed out in class.

INCOME TAXATION OF ESTATES AND TRUSTS

Skim code sections 641-692. This topic will be covered briefly by lecture.

FUNDAMENTAL PLANNING TOOLS AND CURRENT TRENDS

Most of the fundamental estate planning tools, recent trends in estate planning, and
planning and drafting principles that we will cover in this course will be introduced
during our study of the federal wealth transfer taxes above. At the end of the course,
time permitting, we will discuss additional tools and trends in light of the impact of
the federal wealth transfer taxes.

Specific reading and problems will be assigned in class.