Estate planning final exam questions
and answers
Isaac is 67 years old and would like to transfer some of his assets to his adult son Murray. Isaac
does not want to incur any gift tax liability, and also need some cash flow, so he is considering
selling the assets to his son. A friend recently informed Isaac that a self canceling installment
note (SCIN) Is a good planning strategy. Which of the following statements regarding Self
canceling installment note is/are correct - correct answer ✔✔ All are correct
Which of the following statements regarding grantor retained annuity trust (GRAT) is/are true? -
correct answer ✔✔ 1 & 4
A FLP offers all of the following advantages except: - correct answer ✔✔ A method of shifting
future appreciation in the value of assets to the next generation, who would likely be in a lower
tax bracket
Which of the following statements regarding a qualified personal residence trust (QPRT) is/are
true? - correct answer ✔✔ Statements 1 & 3
Which of the following statements is correct concerning Medicaid - correct answer ✔✔
Medicaid is the government's medical and assisted living program for the poor
Which of the following is not true regarding an intentionally defective grantor trust (IDGT) -
correct answer ✔✔ If the grantor dies during the term of the trust, the full value of the trust is
included in his or her gross estate.
In a typical family limited partnership: - correct answer ✔✔ the children or grandchildren
receive limited partnership interests
and answers
Isaac is 67 years old and would like to transfer some of his assets to his adult son Murray. Isaac
does not want to incur any gift tax liability, and also need some cash flow, so he is considering
selling the assets to his son. A friend recently informed Isaac that a self canceling installment
note (SCIN) Is a good planning strategy. Which of the following statements regarding Self
canceling installment note is/are correct - correct answer ✔✔ All are correct
Which of the following statements regarding grantor retained annuity trust (GRAT) is/are true? -
correct answer ✔✔ 1 & 4
A FLP offers all of the following advantages except: - correct answer ✔✔ A method of shifting
future appreciation in the value of assets to the next generation, who would likely be in a lower
tax bracket
Which of the following statements regarding a qualified personal residence trust (QPRT) is/are
true? - correct answer ✔✔ Statements 1 & 3
Which of the following statements is correct concerning Medicaid - correct answer ✔✔
Medicaid is the government's medical and assisted living program for the poor
Which of the following is not true regarding an intentionally defective grantor trust (IDGT) -
correct answer ✔✔ If the grantor dies during the term of the trust, the full value of the trust is
included in his or her gross estate.
In a typical family limited partnership: - correct answer ✔✔ the children or grandchildren
receive limited partnership interests
