Question 1

Match each statement with the correct choice. Some choices may be used more than once or not at all
-Inheritance tax

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) G) and H)
N) E) and H)

Question 2

Sally's will passes real estate to Otto (her surviving spouse). The real estate is worth $800,000 but is subject to a mortgage of $200,000. The transfer provides Sally's estate with a marital deduction of $600,000.

Accepted Answer

A) True 
 B)False

Question 3

Match each statement with the correct choice. Some choices may be used more than once or not at all
-Credit for tax on prior transfers (under § 2013)

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) B) and E)
N) G) and I)

Question 4

Harry and Brenda are husband and wife. Using her funds, Brenda purchases real estate which she lists as: "Harry and Brenda, joint tenants with right of survivorship." If Brenda dies first, all of the value of the real estate will be included in her gross estate.

Accepted Answer

A) True 
 B)False

Question 5

Match each statement with the correct choice. Some choices may be used more than once or not at all
-QTIP election

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) E) and I)
N) C) and I)

Question 6

A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.

Accepted Answer

A) True 
 B)False

Question 7

At the time of his death, Gene held a Roth IRA account with his wife as the designated beneficiary. The IRA is included in Gene's gross estate.

Accepted Answer

A) True 
 B)False

Question 8

Sandy pays a local college for her non-dependent boyfriend's tuition. The payment is subject to the Federal gift tax.

Accepted Answer

A) True 
 B)False

Question 9

Match each statement with the correct choice. Some choices may be used more than once or not at all
-Federal gift tax

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) E) and I)
N) C) and K)

Question 10

As a result of an auto accident from which she later died, Irene totaled a Bentley worth $95,000. If the insurance company covers $60,000 of the loss, Irene's estate can claim a casualty loss of $35,000 in arriving at the taxable estate.

Accepted Answer

A) True 
 B)False

Question 11

In 2013, Glen transferred several assets by gift to different persons. Glen dies in 2015. Information regarding the properties given is summarized below.  ​
The transfer of the land and the stocks and bonds resulted in a total gift tax of $60,000. As to these transactions, Glen's gross estate must include:

Accepted Answer

A)   $0.
B)   $200,000.
C)   $260,000.
D)   $1,900,000.
E)   $1,960,000.F) B) and C)
G) A) and B)

Question 12

Prior to his death in 2015, Ethan made the following taxable gifts.  
The policy on Ethan's life was given to the designated beneficiary. The gift of the stock and the land generated gift taxes of $28,750 and $65,250, respectively.
As to these transfers, how much is included in Ethan's gross estate?

Accepted Answer

$265,250. $200,000 (life insur...

Question 13

In 2000, Irv creates a revocable trust, income payable to his children for life, remainder to his grandchildren. In 2013, Irv relinquishes the power to revoke the trust. If Irv dies in 2015, the trust is not included in his gross estate.

Accepted Answer

A) True 
 B)False

Question 14

Classify each of the independent statements appearing below
-Dower interest claimed by decedent's surviving spouse.

Accepted Answer

A)  Some or all of the interest included in the decedent's gross estate.
B)  None of the interest included in the decedent's gross estate.C) A) and B)
D) undefined

Question 15

Although qualified tuition plans under § 529 are treated favorably for gift tax purposes, such plans are subject to estate tax consequences upon the grantor's death.

Accepted Answer

A) True 
 B)False

Question 16

Classify each of the independent statements appearing below
-Decedent holds a life estate in a trust created by her spouse who died five years ago. The executor of the spouse's estate made a QTIP election as to the trust. Decedent's son is the remainderman of the trust.

Accepted Answer

A)  Some or all of the interest included in the decedent's gross estate.
B)  None of the interest included in the decedent's gross estate.C) A) and B)
D) undefined

Question 17

Classify each statement appearing below
-Hector transfers funds to his aunt so she can obtain a much needed hip operation. The aunt does not qualify as Hector's dependent.

Accepted Answer

A)  No taxable transfer occurs
B)  Gift tax applies
C)  Estate tax appliesD) A) and C)
E) A) and B)

Question 18

Doyle died in 2000 and by will created a trust with the following provisions: "life estate to my wife, Grace, remainder upon her death to our children." Grace dies this year. Is the trust Doyle created included in Grace's gross estate? Explain.

Accepted Answer

If Doyle's executor made the Q...

Question 19

In 2005, Mandy and Hal (mother and son)  purchased land for $600,000 as joint tenants with right of survivorship. Of the $600,000 purchase price, Mandy provided $300,000 and Hal $300,000 (of which $200,000 had been received as a gift from Mandy) . In 2015, Hal dies first when the land is worth $3,000,000. As to the land, Hal's gross estate must include:

Accepted Answer

A)   $500,000.
B)   $1,500,000.
C)   $2,500,000.
D)   $3,000,000.
E)   None of the above.F) B) and D)
G) None of the above

Question 20

Transfers to political organizations are exempt from the application of the Federal gift tax.

Accepted Answer

A) True 
 B)False

Exam 18: The Federal Gift and Estate Taxes

Harry and Brenda are husband and wife. Using her funds, Brenda purchases real estate which she lists as: "Harry and Brenda, joint tenants with right of survivorship." If Brenda dies first, all of the value of the real estate will be included in her gross estate.

Correct Answer
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In 2000, Irv creates a revocable trust, income payable to his children for life, remainder to his grandchildren. In 2013, Irv relinquishes the power to revoke the trust. If Irv dies in 2015, the trust is not included in his gross estate.

Correct Answer
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Match each statement with the correct choice. Some choices may be used more than once or not at all -Inheritance tax

Correct Answer
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At the time of his death, Gene held a Roth IRA account with his wife as the designated beneficiary. The IRA is included in Gene's gross estate.

Correct Answer
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Correct Answer
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Although qualified tuition plans under § 529 are treated favorably for gift tax purposes, such plans are subject to estate tax consequences upon the grantor's death.

Correct Answer
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Match each statement with the correct choice. Some choices may be used more than once or not at all -Federal gift tax

Correct Answer
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Correct Answer
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Classify each statement appearing below -Hector transfers funds to his aunt so she can obtain a much needed hip operation. The aunt does not qualify as Hector's dependent.

Correct Answer
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Transfers to political organizations are exempt from the application of the Federal gift tax.

Correct Answer
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Classify each of the independent statements appearing below -Dower interest claimed by decedent's surviving spouse.

Correct Answer
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Classify each of the independent statements appearing below -Decedent holds a life estate in a trust created by her spouse who died five years ago. The executor of the spouse's estate made a QTIP election as to the trust. Decedent's son is the remainderman of the trust.

Correct Answer
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As a result of an auto accident from which she later died, Irene totaled a Bentley worth $95,000. If the insurance company covers $60,000 of the loss, Irene's estate can claim a casualty loss of $35,000 in arriving at the taxable estate.

Correct Answer
verified

A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.

Correct Answer
verified

Sandy pays a local college for her non-dependent boyfriend's tuition. The payment is subject to the Federal gift tax.

Correct Answer
verified

Match each statement with the correct choice. Some choices may be used more than once or not at all -QTIP election

Correct Answer
verified

Doyle died in 2000 and by will created a trust with the following provisions: "life estate to my wife, Grace, remainder upon her death to our children." Grace dies this year. Is the trust Doyle created included in Grace's gross estate? Explain.

Correct Answer
verified
If Doyle's executor made the Q...
View Answer

Prior to his death in 2015, Ethan made the following taxable gifts. The policy on Ethan's life was given to the designated beneficiary. The gift of the stock and the land generated gift taxes of $28,750 and $65,250, respectively. As to these transfers, how much is included in Ethan's gross estate?

Correct Answer
verified
$265,250. $200,000 (life insur...
View Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all -Credit for tax on prior transfers (under § 2013)

Correct Answer
verified

Sally's will passes real estate to Otto (her surviving spouse). The real estate is worth $800,000 but is subject to a mortgage of $200,000. The transfer provides Sally's estate with a marital deduction of $600,000.

Correct Answer
verified

Exam 18: The Federal Gift and Estate Taxes

Harry and Brenda are husband and wife. Using her funds, Brenda purchases real estate which she lists as: "Harry and Brenda, joint tenants with right of survivorship." If Brenda dies first, all of the value of the real estate will be included in her gross estate.

Correct AnswerverifiedShow Answer

In 2000, Irv creates a revocable trust, income payable to his children for life, remainder to his grandchildren. In 2013, Irv relinquishes the power to revoke the trust. If Irv dies in 2015, the trust is not included in his gross estate.

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all -Inheritance tax

Correct AnswerverifiedShow Answer

At the time of his death, Gene held a Roth IRA account with his wife as the designated beneficiary. The IRA is included in Gene's gross estate.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Although qualified tuition plans under § 529 are treated favorably for gift tax purposes, such plans are subject to estate tax consequences upon the grantor's death.

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all -Federal gift tax

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Classify each statement appearing below -Hector transfers funds to his aunt so she can obtain a much needed hip operation. The aunt does not qualify as Hector's dependent.

Correct AnswerverifiedShow Answer

Transfers to political organizations are exempt from the application of the Federal gift tax.

Correct AnswerverifiedShow Answer

Classify each of the independent statements appearing below -Dower interest claimed by decedent's surviving spouse.

Correct AnswerverifiedShow Answer

Classify each of the independent statements appearing below -Decedent holds a life estate in a trust created by her spouse who died five years ago. The executor of the spouse's estate made a QTIP election as to the trust. Decedent's son is the remainderman of the trust.

Correct AnswerverifiedShow Answer

As a result of an auto accident from which she later died, Irene totaled a Bentley worth $95,000. If the insurance company covers $60,000 of the loss, Irene's estate can claim a casualty loss of $35,000 in arriving at the taxable estate.

Correct AnswerverifiedShow Answer

A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.

Correct AnswerverifiedShow Answer

Sandy pays a local college for her non-dependent boyfriend's tuition. The payment is subject to the Federal gift tax.

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all -QTIP election

Correct AnswerverifiedShow Answer

Doyle died in 2000 and by will created a trust with the following provisions: "life estate to my wife, Grace, remainder upon her death to our children." Grace dies this year. Is the trust Doyle created included in Grace's gross estate? Explain.

Correct AnswerverifiedIf Doyle's executor made the Q...View AnswerShow Answer

Prior to his death in 2015, Ethan made the following taxable gifts. The policy on Ethan's life was given to the designated beneficiary. The gift of the stock and the land generated gift taxes of $28,750 and $65,250, respectively. As to these transfers, how much is included in Ethan's gross estate?

Correct Answerverified$265,250. $200,000 (life insur...View AnswerShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all -Credit for tax on prior transfers (under § 2013)

Correct AnswerverifiedShow Answer

Sally's will passes real estate to Otto (her surviving spouse). The real estate is worth $800,000 but is subject to a mortgage of $200,000. The transfer provides Sally's estate with a marital deduction of $600,000.

Correct AnswerverifiedShow Answer

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If Doyle's executor made the Q...
View Answer

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$265,250. $200,000 (life insur...
View Answer

Correct Answer
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Correct Answer
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