AWMA - Module 7 Quiz Estate Planning
for High Net Worth Clients 2025 Expert
Verified | Ace the Test
Which of the following are the only exceptions to an estate transfer being subject
to the GSTT when a gratuitous completed inter vivos transfer is a generation-
skipping transfer?
1. The transferor makes payments directly to the recipient for medical expenses
2. The transferor makes direct payments of medical expenses to the medical
provider on behalf of the recipient
3. The transferor makes payments directly to the recipient for educational expenses
and room and board
4. The transferor makes direct payments to the educational institution for tuition
expenses on behalf of the recipient
, A) II and III
B) I and IV
C) II only
D) II and IV - 🧠 ANSWER ✔✔D
The transferor can qualify within the limited exception if direct payment is made
for medical expenses in addition to making direct payments for tuition expenses.
Use of the GSTT exemption for lifetime skips is
A) not mandatory.
B) applicable only for the wealthy.
C) only available for lifetime transfers.
D) only applicable for nonskip parties. - 🧠 ANSWER ✔✔A
Unlike the applicable credit amount that is used to keep a taxpayer from having to
pay gift or estate taxes that would otherwise be due, use of the GSTT exemption
for High Net Worth Clients 2025 Expert
Verified | Ace the Test
Which of the following are the only exceptions to an estate transfer being subject
to the GSTT when a gratuitous completed inter vivos transfer is a generation-
skipping transfer?
1. The transferor makes payments directly to the recipient for medical expenses
2. The transferor makes direct payments of medical expenses to the medical
provider on behalf of the recipient
3. The transferor makes payments directly to the recipient for educational expenses
and room and board
4. The transferor makes direct payments to the educational institution for tuition
expenses on behalf of the recipient
, A) II and III
B) I and IV
C) II only
D) II and IV - 🧠 ANSWER ✔✔D
The transferor can qualify within the limited exception if direct payment is made
for medical expenses in addition to making direct payments for tuition expenses.
Use of the GSTT exemption for lifetime skips is
A) not mandatory.
B) applicable only for the wealthy.
C) only available for lifetime transfers.
D) only applicable for nonskip parties. - 🧠 ANSWER ✔✔A
Unlike the applicable credit amount that is used to keep a taxpayer from having to
pay gift or estate taxes that would otherwise be due, use of the GSTT exemption
