Estate Planning exam 2 questions well
answered
Gross estate - ANS ✔✔FMV of all interests owned by the decedent at time of death
Reversionary interest - ANS ✔✔any interest that includes a possibility that the property
transferred by the decedent may return to them or their estate, or that property transferred by
the decedent may become subject to a power of disposition by them
straight single life annuity - ANS ✔✔paid to the annuitant until death.
Survivorship annuity - ANS ✔✔provides payments to one person, and then provides payments
to a second person upon death of the first
Power of appointment - ANS ✔✔power to decide who will enjoy or own property
minority discount - ANS ✔✔reduction in the value of an asset caused by the transfer of a
minority interest in a business ranging from 15-50%
blockage discount - ANS ✔✔attributable to the value of large blocks of corporate stock that are
listed on a public exchange
key person discount - ANS ✔✔reduction in the FMV of transferred stock due to an economic
reality that the value of the stock will decline if a key person, such as the founder, dies or
becomes disabled
, date of declaration - ANS ✔✔date the board of directors approves and declares that a dividend
will be paid to shareholders
X dividend date - ANS ✔✔date that the market price of the stock adjusts for the dividend
date of record - ANS ✔✔date that the company determines who owns stock in the company
and is entitled to a dividend, regardless of whether or not they own the stock as of the payment
date
alternate valuation date - ANS ✔✔provided to give relief to a decedent who happened to die on
a date where his gross estate had a high value due to temporary market conditions. Either 6
months after death, or if asset is disposed within 6 months, the date of disposition
adjusted gross estate - ANS ✔✔gross estate less any deductions for funeral, medical,
administrative, debts, and losses during the administration of the estate
taxable estate - ANS ✔✔adjusted gross estate, less unlimited charitable and marital deductions
tentative tax base - ANS ✔✔sum of taxable estate plus the post-1976 taxable gifts
tentative tax - ANS ✔✔total transfer taxes, estate and gift, on all property transferred by the
decedent during his life and at death
portability - ANS ✔✔ability of the executor of an estate to timely file Form 706 to transfer the
decedents unused credit exclusion to the surviving spouse
estate tax liability - ANS ✔✔tentative tax less any applicable credits available to a decedent's
estate
answered
Gross estate - ANS ✔✔FMV of all interests owned by the decedent at time of death
Reversionary interest - ANS ✔✔any interest that includes a possibility that the property
transferred by the decedent may return to them or their estate, or that property transferred by
the decedent may become subject to a power of disposition by them
straight single life annuity - ANS ✔✔paid to the annuitant until death.
Survivorship annuity - ANS ✔✔provides payments to one person, and then provides payments
to a second person upon death of the first
Power of appointment - ANS ✔✔power to decide who will enjoy or own property
minority discount - ANS ✔✔reduction in the value of an asset caused by the transfer of a
minority interest in a business ranging from 15-50%
blockage discount - ANS ✔✔attributable to the value of large blocks of corporate stock that are
listed on a public exchange
key person discount - ANS ✔✔reduction in the FMV of transferred stock due to an economic
reality that the value of the stock will decline if a key person, such as the founder, dies or
becomes disabled
, date of declaration - ANS ✔✔date the board of directors approves and declares that a dividend
will be paid to shareholders
X dividend date - ANS ✔✔date that the market price of the stock adjusts for the dividend
date of record - ANS ✔✔date that the company determines who owns stock in the company
and is entitled to a dividend, regardless of whether or not they own the stock as of the payment
date
alternate valuation date - ANS ✔✔provided to give relief to a decedent who happened to die on
a date where his gross estate had a high value due to temporary market conditions. Either 6
months after death, or if asset is disposed within 6 months, the date of disposition
adjusted gross estate - ANS ✔✔gross estate less any deductions for funeral, medical,
administrative, debts, and losses during the administration of the estate
taxable estate - ANS ✔✔adjusted gross estate, less unlimited charitable and marital deductions
tentative tax base - ANS ✔✔sum of taxable estate plus the post-1976 taxable gifts
tentative tax - ANS ✔✔total transfer taxes, estate and gift, on all property transferred by the
decedent during his life and at death
portability - ANS ✔✔ability of the executor of an estate to timely file Form 706 to transfer the
decedents unused credit exclusion to the surviving spouse
estate tax liability - ANS ✔✔tentative tax less any applicable credits available to a decedent's
estate
