NO.PZ202301041000002103
问题如下：
The Gondos meet with their investment advisor to determine the optimal way to accomplish some specific bequests. The Gondos seek to transfer a sum of EUR 150,000 to Emma’s cousin Erica, for the benefit of Erica’s son. Erica and her son live in the same country as the Gondos, and Erica is subject to a lower income tax rate than the Gondos. The investment advisor assumes that Erica’s pre-tax investment returns on any gifted assets would be equal to the Gondos, and that Erica’s estate will not be subject to estate tax. The country’s annual gift exclusion allowance is EUR 30,000, with no lifetime limit. Any gifts over the exclusion allowance are taxed to the donor at a flat rate of 40%. The advisor recommends the Gondos make an annual gift of EUR 30,000 to Erica over the next five years, rather than transferring wealth to her upon Emma’s death.
Justify, with two reasons, why tax considerations favor the Gondos making annual gifts to Erica.
选项：
解释：
Tax considerations
favor the Gordon making annual gifts for the following reasons:
•
By making annual gifts of EUR
30,000 over the next five years, the Gondos and Erica can avoid paying gift
taxes.
•
Since Erica’s income tax rate
is lower than that of the Gondos and her pre-tax investment returns are assumed
to be the same as that of the Gondos, the future after-tax value of any gifted
amount will be greater than if this amount stayed in the Gondos’ estate.
•
The value of the Gondos’
taxable estate is lowered as a result of the annual gifts. Since it is assumed
that Erica’s estate will not be subject to estate tax, the gifts further reduce
any future estate taxes for the Gondos.
老师，正式考试时，能否根据题意写出表达式，再结合题意进行分析？如下回答：
According to the recommendation from the advisor, the functions for transfering by gifts and bequests can be showed as follows:
The gifts:
[150,000-(150,000-30,000)×40%]×[1+r×(1-TaxErica)]^n
=(150,000×60%+12,000)×[1+r×(1-TaxErica)]^n
The bequests:
150,000×[1+r×(1-TaxGondos)]^n×(1-40%)
=(150,000×60%)×[1+r×(1-TaxGondos)]^n
It shows that the estate value of gifts is greater than that of the bequests due to an annual allowance of 30,000 with regard to the gifts, leading to an excess value 12000 to the annual investment capital. By realistic explanation, some of estate taxes is deducted by the allowance annually, giving rise to an increase to the estate value over the next five years.
Given as the TaxErica＜TaxGondos and pre-tax investment returns are equal, it can be seen that the investment returns accumulated by Erica is much more in a way of lifetime gifts.
As a result, transfering by lifetime gifts using annual allowance over next five years is most tax efficient way for Gondons and Erica.
