Question 1

Match each statement with the correct choice. Some choices may be used more than once or not at all.
-Tenancy in common

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) E) and J)
N) F) and I)

Question 2

At the time of his death, Lance held a life estate in the LM Trust. Under which of the following circumstances will the LM Trust not be included in his gross estate?

Accepted Answer

A)  The trust was created by Lance and was revocable. He released the power to revoke four years before his death.
B)  The trust was created by Lance and is irrevocable.
C)  The trust was created by Lance's father.
D)  The trust was created by Lance's deceased wife and the executor of her estate made a QTIP election.
E)  None of the above.F) C) and E)
G) A) and E)

Question 3

Match each statement with the correct choice. Some choices may be used more than once or not at all.
-Clarence pays the medical providers (e.g., physicians, hospital)  for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) F) and J)
N) A) and E)

Question 4

Match each statement with the correct choice. Some choices may be used more than once or not at all.
-Election to split gifts (§ 2513)

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) D) and E)
N) B) and I)

Question 5

Some states impose inheritance taxes, but the Federal tax system does not.

Accepted Answer

A) True 
 B)False

Question 6

Lyle and Kelly are brother and sister. Using his funds, Lyle purchases land, listing title as: "Lyle and Kelly, joint tenants with right of survivorship." If Kelly dies first, none of the land is included in her gross estate.

Accepted Answer

A) True 
 B)False

Question 7

In which, if any, of the following independent situations has Jean made a gift?

Accepted Answer

A)  Jean gives her 19-year old son $20,000 to be used by him for his college expenses.
B)  Jean buys her non-dependent grandfather a new $120,000 RV for his birthday.
C)  Jean sends $14,000 to Temple University to cover her nephew's tuition. The nephew does not qualify as Jean's dependent.
D)  Jean contributes $10,000 to her U.S. Senator's reelection campaign.
E)  None of the above.F) A) and D)
G) B) and C)

Question 8

If the value of the gross estate is lower on the alternate valuation date than on the date of death, the date of death valuation cannot be used.

Accepted Answer

A) True 
 B)False

Question 9

In the past five years, the amount of the unified tax credit always has been the same for both transfers by gift and transfers by death.

Accepted Answer

A) True 
 B)False

Question 10

Lily pays for her grandson's college expenses. Under what conditions might such payments not be a gift?

Accepted Answer

Lily's grandson might be her dependent a...

Question 11

In 2016, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $140,000 ($28,000 × 5 years).

Accepted Answer

A) True 
 B)False

Question 12

At the time of her death, Megan was involved in the following. ∙
Owned an insurance policy on the life of her father with a replacement cost of $250,000 and maturity value of $800,000. The designated beneficiary of the policy is Megan's estate.
∙
Was an equal tenant in common with her brother in a tract of land worth $800,000. The land was inherited from their grandmother 10 years ago when it had a value of $200,000.
∙
Was a joint tenant with her two sisters in stock worth $1,500,000. The stock was inherited from their grandmother 10 years ago when it had a value of $500,000.
​
As to these transactions, Megan's gross estate must include:

Accepted Answer

A)  $250,000.
B)  $1,150,000.
C)  $1,400,000.
D)  $2,150,000.
E)  None of the above.F) D) and E)
G) A) and E)

Question 13

Match each statement with the correct choice. Some choices may be used more than once or not at all.
-Meg gives her 18-year-old son money for his college tuition and living expenses (e.g., room and board) .

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) A) and G)
N) C) and H)

Question 14

Death does not defeat a deceased spouse's interest in a tenancy by the entirety.

Accepted Answer

A) True 
 B)False

Question 15

Becky made taxable gifts in 2013, 2014, and 2016. In computing the gift tax on the 2016 gift, she must consider all of the prior taxable gifts.

Accepted Answer

A) True 
 B)False

Question 16

At the time of her death, Amber owns property worth $5,000,000. Other information regarding her affairs is as follows. $\begin{array}{llr}
  \text { Unpaid pledge to the building fund of her church  } &\$50,000\
 \text {  College graduation gift she had promised her grandson} &20,000\
 \text { Local property taxes owed (accued prior to death) } &100,000\
 \text {  Casualty loss to uninsured vacati on home (fire occurred one month before death)  } &500,000\
 \text { Mortgage owed on personal residence } &800,000\
\end{array}$
 ?
All of these items (except the casualty loss) were paid by her estate, and none were deducted on Form 1041 (income tax return of the estate). What is Amber's taxable estate?

Accepted Answer

$4,050,000. $5,000,000 (gross estate) - ...

Question 17

In contrasting the computation of the Federal gift and estate taxes, are past taxable gifts handled in the same fashion? Explain.

Accepted Answer

In determining the gift tax ba...

Question 18

At one point, the tax rates applicable to transfers by gift were different than those applying to transfers by death.

Accepted Answer

A) True 
 B)False

Question 19

Daniel's will provides that all of his property passes to a trust, life estate to his wife, remainder to charity. If Daniel's executor does not make a QTIP election, the use of the marital deduction is not possible.

Accepted Answer

A) True 
 B)False

Question 20

Match each statement with the correct choice. Some choices may be used more than once or not at all.
-Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace predeceases Nadine.

Accepted Answer

A)  In the current year, Debby, a widow, dies. Two years ago she inherited a large amount of wealth from her brother.
B)  Death does not defeat an owner's interest in property.
C)  Exists only if husband and wife are involved.
D)  A type of state tax on transfers by death.
E)  Must decrease the amount of the gross estate.F) Annual exclusion not allowed.G) Cumulative in effect.H) Right of survivorship present as to type of ownership.I) Avoids the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) K) and L)
N) A) and I)

Exam 18: The Federal Gift and Estate Taxes

Daniel's will provides that all of his property passes to a trust, life estate to his wife, remainder to charity. If Daniel's executor does not make a QTIP election, the use of the marital deduction is not possible.

Correct Answer
verified

Lily pays for her grandson's college expenses. Under what conditions might such payments not be a gift?

Correct Answer
verified
Lily's grandson might be her dependent a...
View Answer

In the past five years, the amount of the unified tax credit always has been the same for both transfers by gift and transfers by death.

Correct Answer
verified

In which, if any, of the following independent situations has Jean made a gift?

Correct Answer
verified

Correct Answer
verified
$4,050,000. $5,000,000 (gross estate) - ...
View Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Meg gives her 18-year-old son money for his college tuition and living expenses (e.g., room and board) .

Correct Answer
verified

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Clarence pays the medical providers (e.g., physicians, hospital) for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Correct Answer
verified

At the time of his death, Lance held a life estate in the LM Trust. Under which of the following circumstances will the LM Trust not be included in his gross estate?

Correct Answer
verified

In 2016, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $140,000 ($28,000 × 5 years).

Correct Answer
verified

Lyle and Kelly are brother and sister. Using his funds, Lyle purchases land, listing title as: "Lyle and Kelly, joint tenants with right of survivorship." If Kelly dies first, none of the land is included in her gross estate.

Correct Answer
verified

Some states impose inheritance taxes, but the Federal tax system does not.

Correct Answer
verified

Becky made taxable gifts in 2013, 2014, and 2016. In computing the gift tax on the 2016 gift, she must consider all of the prior taxable gifts.

Correct Answer
verified

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Tenancy in common

Correct Answer
verified

In contrasting the computation of the Federal gift and estate taxes, are past taxable gifts handled in the same fashion? Explain.

Correct Answer
verified
In determining the gift tax ba...
View Answer

Correct Answer
verified

If the value of the gross estate is lower on the alternate valuation date than on the date of death, the date of death valuation cannot be used.

Correct Answer
verified

Death does not defeat a deceased spouse's interest in a tenancy by the entirety.

Correct Answer
verified

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Election to split gifts (§ 2513)

Correct Answer
verified

At one point, the tax rates applicable to transfers by gift were different than those applying to transfers by death.

Correct Answer
verified

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace predeceases Nadine.

Correct Answer
verified

Exam 18: The Federal Gift and Estate Taxes

Daniel's will provides that all of his property passes to a trust, life estate to his wife, remainder to charity. If Daniel's executor does not make a QTIP election, the use of the marital deduction is not possible.

Correct AnswerverifiedShow Answer

Lily pays for her grandson's college expenses. Under what conditions might such payments not be a gift?

Correct AnswerverifiedLily's grandson might be her dependent a...View AnswerShow Answer

In the past five years, the amount of the unified tax credit always has been the same for both transfers by gift and transfers by death.

Correct AnswerverifiedShow Answer

In which, if any, of the following independent situations has Jean made a gift?

Correct AnswerverifiedShow Answer

Correct Answerverified$4,050,000. $5,000,000 (gross estate) - ...View AnswerShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Meg gives her 18-year-old son money for his college tuition and living expenses (e.g., room and board) .

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Clarence pays the medical providers (e.g., physicians, hospital) for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Correct AnswerverifiedShow Answer

At the time of his death, Lance held a life estate in the LM Trust. Under which of the following circumstances will the LM Trust not be included in his gross estate?

Correct AnswerverifiedShow Answer

In 2016, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $140,000 ($28,000 × 5 years).

Correct AnswerverifiedShow Answer

Lyle and Kelly are brother and sister. Using his funds, Lyle purchases land, listing title as: "Lyle and Kelly, joint tenants with right of survivorship." If Kelly dies first, none of the land is included in her gross estate.

Correct AnswerverifiedShow Answer

Some states impose inheritance taxes, but the Federal tax system does not.

Correct AnswerverifiedShow Answer

Becky made taxable gifts in 2013, 2014, and 2016. In computing the gift tax on the 2016 gift, she must consider all of the prior taxable gifts.

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Tenancy in common

Correct AnswerverifiedShow Answer

In contrasting the computation of the Federal gift and estate taxes, are past taxable gifts handled in the same fashion? Explain.

Correct AnswerverifiedIn determining the gift tax ba...View AnswerShow Answer

Correct AnswerverifiedShow Answer

If the value of the gross estate is lower on the alternate valuation date than on the date of death, the date of death valuation cannot be used.

Correct AnswerverifiedShow Answer

Death does not defeat a deceased spouse's interest in a tenancy by the entirety.

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Election to split gifts (§ 2513)

Correct AnswerverifiedShow Answer

At one point, the tax rates applicable to transfers by gift were different than those applying to transfers by death.

Correct AnswerverifiedShow Answer

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace predeceases Nadine.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Lily's grandson might be her dependent a...
View Answer

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$4,050,000. $5,000,000 (gross estate) - ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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In determining the gift tax ba...
View Answer

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Correct Answer
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