Cannon Trust School 2- Advanced Marital & Document
Analysis Knowledge Checks WITH CORRECT ANSWERS WELL
VERIFIED LATEST EDITION !
• Describe Portability
• What are some of the advantages of Portability?
• How do you elect Portability?
• Now that Portability is a permanent part of the transfer tax system, may the Bypass trust still be a
valuable tool? Why?
• What are the three components of what is transfer tax free? - ANSWER⭐☑️• Describe Portability
- Ability for S1 to pass their unused exemption amount to SS
• What are some of the advantages of Portability?
- Simple, 2nd basis step-up, SS control, less income tax
• How do you elect Portability?
- Filing estate tax return within 5 years on form 706
• Now that Portability is a permanent part of the transfer tax system, may the Bypass trust still be a
valuable tool? Why?
- "Grandfather" exemption amount
• What are the three components of what is transfer tax free?
- Annual exclusion, Qualified transfers, Applicable exclusion amount
• A QTIP trust for the benefit of Surviving Spouse (SS) provides all trust income, and trust principal for
health and support. SS has a limited power of appointment over the trust. The executor makes a QTIP
election for this trust on the decedent spouse's estate tax return. Will this be included in SS estate?
Why?
, • What if principal could be distributed to spouse or descendants under the same standard?
• What are the minimum distribution requirements of a QTIP trust?
• What are the maximum distribution options for a QTIP trust?
• How do you elect QTIP for the Marital Deduction? - ANSWER⭐☑️• A QTIP trust for the benefit of
Surviving Spouse (SS) provides all trust income, and trust principal for health and support. SS has a
limited power of appointment over the trust. The executor makes a QTIP election for this trust on the
decedent spouse's estate tax return. Will this be included in SS estate?
Why?
-Yes, executor made election on 706. Delay estate tax to 2nd death
• What if principal could be distributed to spouse or descendants under the same standard?
- Fail to qualify for QTIP election
• What are the minimum distribution requirements of a QTIP trust?
- Pay all income
• What are the maximum distribution options for a QTIP trust?
- All income/ limited powers- HEMS/ 5x5
• How do you elect QTIP for the Marital Deduction?
- Schedule M
• A trust provides that Surviving Spouse (SS) will receive all trust income and receive principal in the
form of an annuity for life. Does this qualify for the "QTIP" election?
• If the remainder passed to charity would it qualify for the charitable deduction? When?
• Why is the QTIP trust included in the SS's estate?
Analysis Knowledge Checks WITH CORRECT ANSWERS WELL
VERIFIED LATEST EDITION !
• Describe Portability
• What are some of the advantages of Portability?
• How do you elect Portability?
• Now that Portability is a permanent part of the transfer tax system, may the Bypass trust still be a
valuable tool? Why?
• What are the three components of what is transfer tax free? - ANSWER⭐☑️• Describe Portability
- Ability for S1 to pass their unused exemption amount to SS
• What are some of the advantages of Portability?
- Simple, 2nd basis step-up, SS control, less income tax
• How do you elect Portability?
- Filing estate tax return within 5 years on form 706
• Now that Portability is a permanent part of the transfer tax system, may the Bypass trust still be a
valuable tool? Why?
- "Grandfather" exemption amount
• What are the three components of what is transfer tax free?
- Annual exclusion, Qualified transfers, Applicable exclusion amount
• A QTIP trust for the benefit of Surviving Spouse (SS) provides all trust income, and trust principal for
health and support. SS has a limited power of appointment over the trust. The executor makes a QTIP
election for this trust on the decedent spouse's estate tax return. Will this be included in SS estate?
Why?
, • What if principal could be distributed to spouse or descendants under the same standard?
• What are the minimum distribution requirements of a QTIP trust?
• What are the maximum distribution options for a QTIP trust?
• How do you elect QTIP for the Marital Deduction? - ANSWER⭐☑️• A QTIP trust for the benefit of
Surviving Spouse (SS) provides all trust income, and trust principal for health and support. SS has a
limited power of appointment over the trust. The executor makes a QTIP election for this trust on the
decedent spouse's estate tax return. Will this be included in SS estate?
Why?
-Yes, executor made election on 706. Delay estate tax to 2nd death
• What if principal could be distributed to spouse or descendants under the same standard?
- Fail to qualify for QTIP election
• What are the minimum distribution requirements of a QTIP trust?
- Pay all income
• What are the maximum distribution options for a QTIP trust?
- All income/ limited powers- HEMS/ 5x5
• How do you elect QTIP for the Marital Deduction?
- Schedule M
• A trust provides that Surviving Spouse (SS) will receive all trust income and receive principal in the
form of an annuity for life. Does this qualify for the "QTIP" election?
• If the remainder passed to charity would it qualify for the charitable deduction? When?
• Why is the QTIP trust included in the SS's estate?
