Estate Planning exam 2 questions well
answered
The gross estate includes property that avoids probate, such as life insurance
proceeds payable to a named beneficiary.
true
which of the following regarding portability of a deceased spouse's unused exemption is not
correct?
A surviving spouse of more than one deceased spouse is permitted to stack portability of
unused exemptions of up to three deceased spouses
which of the following incidents of ownership. held during the three year period before death,
will cause inclusion of life insurance proceeds in the gross estate?
Any of the above incidents of ownership would be enough to bring the
proceeas into the gross estate
Which is not a common method of reducing the gross estate?
Transferring property to a revocable living trust.
Which of the following is not a deduction from the adjusted gross estate?
Gift tax deduction.
The executor elects to use the alternate valuation date. Which ot the following statements is
incorrect?
The executor makes this election in order to obtain a higher stepped-up basis
for income tax ourooses.
The alternate valuation date is exactiv months) following the date of death:
6
Several vears ago. Theo and his sister, Rudy, purchased a tract of real property as joint tenants
with right of survivorship (JTWROS). Theo contributed $50,000 toward the $200,000 purchase
price and Rudy contributed the remaining $150,000. Rudy died in the current year, and her will
provided that all of her assets pass to her daughter, Vanessa. The real property was worth
, $1,000,000 on the date of Rudy's death. The value of Rudy's interest in the property includible
in her gross estate is:
$750,000.
A minority interest discount mav be available when all of the rollowing conditions
apov except:
The decedent held a minor management role in a limited partnership.
At the time of her death. Tarn owned an annuity with payments that will continue after her
death to her beneficiary. What amount of the annuity, if any, will be
included in Tarvn's gross estate.
A surviving spouse of more than one deceased spouse is permitted to stack portability of
unused exemptions of up to three deceased spouses.
Which of the following statements regarding a qualified personal residence trust
(OPRT) is/are t rue?
1. The grantor must survive the trust term to realize any estate tax savings.
2. After the trust term, the house will revert back to the grantor.
3. The grantor will have a taxable gift upon the creation of the OPRT.
4. A OPT is generally inappropriate for vacation homes.
1 and 3
Which of the following is false regarding an intentionally defective grantor trust (IDGT)?
If the grantor dies during the term of the trust, the full value of the trust is
included in their gross estate
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 needs 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 selt-canceling installment
notes (SCINs) is/are correct?
T1. o be effective, a SCIN must reflect a risk premium to compensate the seller for the possibility
of cancellation.
2 A seler of a SCIN mav accept security without leopardizing the installment sale
treatment.
answered
The gross estate includes property that avoids probate, such as life insurance
proceeds payable to a named beneficiary.
true
which of the following regarding portability of a deceased spouse's unused exemption is not
correct?
A surviving spouse of more than one deceased spouse is permitted to stack portability of
unused exemptions of up to three deceased spouses
which of the following incidents of ownership. held during the three year period before death,
will cause inclusion of life insurance proceeds in the gross estate?
Any of the above incidents of ownership would be enough to bring the
proceeas into the gross estate
Which is not a common method of reducing the gross estate?
Transferring property to a revocable living trust.
Which of the following is not a deduction from the adjusted gross estate?
Gift tax deduction.
The executor elects to use the alternate valuation date. Which ot the following statements is
incorrect?
The executor makes this election in order to obtain a higher stepped-up basis
for income tax ourooses.
The alternate valuation date is exactiv months) following the date of death:
6
Several vears ago. Theo and his sister, Rudy, purchased a tract of real property as joint tenants
with right of survivorship (JTWROS). Theo contributed $50,000 toward the $200,000 purchase
price and Rudy contributed the remaining $150,000. Rudy died in the current year, and her will
provided that all of her assets pass to her daughter, Vanessa. The real property was worth
, $1,000,000 on the date of Rudy's death. The value of Rudy's interest in the property includible
in her gross estate is:
$750,000.
A minority interest discount mav be available when all of the rollowing conditions
apov except:
The decedent held a minor management role in a limited partnership.
At the time of her death. Tarn owned an annuity with payments that will continue after her
death to her beneficiary. What amount of the annuity, if any, will be
included in Tarvn's gross estate.
A surviving spouse of more than one deceased spouse is permitted to stack portability of
unused exemptions of up to three deceased spouses.
Which of the following statements regarding a qualified personal residence trust
(OPRT) is/are t rue?
1. The grantor must survive the trust term to realize any estate tax savings.
2. After the trust term, the house will revert back to the grantor.
3. The grantor will have a taxable gift upon the creation of the OPRT.
4. A OPT is generally inappropriate for vacation homes.
1 and 3
Which of the following is false regarding an intentionally defective grantor trust (IDGT)?
If the grantor dies during the term of the trust, the full value of the trust is
included in their gross estate
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 needs 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 selt-canceling installment
notes (SCINs) is/are correct?
T1. o be effective, a SCIN must reflect a risk premium to compensate the seller for the possibility
of cancellation.
2 A seler of a SCIN mav accept security without leopardizing the installment sale
treatment.
