Question 1

At the time of his death, Raul owned a residence with his wife, Manuela, as joint tenants. Manuela purchased the residence 10 years ago at a cost of $300,000; it now has a fair market value of $1.4 million. Raul's estate will be allowed no marital deduction as to the property.

Accepted Answer

A) True 
 B)False

Question 2

Classify each statement appropriately.
-Casualty loss to property before the death of the owner.

Accepted Answer

A)  Deductible from the gross estate in arriving at the taxable estate.
B)  Not deductible from the gross estate in arriving at the taxable estate.C) A) and B)
D) undefined

Question 3

A lifetime transfer that is supported by full and adequate consideration is not a gift.

Accepted Answer

A) True 
 B)False

Question 4

In 2015, Noah and Kelly acquired real estate for $2,000,000 with Noah furnishing $400,000 of the purchase price and Kelly providing the balance. Title to the property is listed as: "Noah and Kelly, equal tenants in common." Noah dies before Kelly in 2019 when the real estate is worth $4,000,000.
a. Were there any tax consequences in 2015? Explain.
a. and
b. As to the real estate, how much is included in Noah's gross estate?
b., would it make any difference whether Noah and Kelly are brother and sister or husband and wife?
c. As to choices

Accepted Answer

a. When the tenancy was created, Kelly m...

Question 5

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

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) Overrides the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) A) and L)
N) B) and E)

Question 6

Classify each of the following statements.
-Meg gives her 18-year-old son money for his college tuition and living expenses
e.g., room and board) .

Accepted Answer

A)  No taxable transfer occurs.
B)  Gift tax applies.
C)  Estate tax applies.D) A) and B)
E) All of the above

Question 7

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 8

Classify each of the following independent statements:.
-State income tax refund received after death on a tax return filed before death.

Accepted Answer

A)  Some or all of the asset is included in the decedent's gross estate.
B)  None of the asset is included in the decedent's gross estate.C) A) and B)
D) undefined

Question 9

Match each statement with the correct choice. Some choices may be used more than once or not at all.
-Alternate valuation date

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) Overrides the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) C) and I)
N) C) and K)

Question 10

Peggy gives $200,000 to her grandson. This is an example of a direct skip for purposes of the generation-skipping transfer tax GSTT).

Accepted Answer

A) True 
 B)False

Question 11

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

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) Overrides the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) A) and H)
N) E) and F)

Question 12

Harry and Brenda are husband and wife. Using her funds, Brenda purchases real estate that she lists as: "Harry and Brenda, joint tenants with right of survivorship." If Brenda dies first, all of the value of the real estate is included in her gross estate.

Accepted Answer

A) True 
 B)False

Question 13

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

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) Overrides the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) A) and K)
N) E) and I)

Question 14

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) Overrides the terminable interest rule of the marital deduction.J) Exemption equivalent.K) Bypass amount.L) No correct match provided.M) B) and C)
N) D) and L)

Question 15

A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.

Accepted Answer

A) True 
 B)False

Question 16

Classify each of the following statements:
-Under a prenuptial agreement, Herbert transfers stock to Norma. One month later, Herbert and Norma are married.

Accepted Answer

A)  No taxable transfer occurs.
B)  Gift tax applies.
C)  Estate tax applies.D) All of the above
E) A) and B)

Question 17

Classify each of the following statements.
-Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace later withdraws all of the funds.

Accepted Answer

A)  No taxable transfer occurs.
B)  Gift tax applies.
C)  Estate tax applies.D) None of the above
E) A) and C)

Question 18

In year 1 and with $100,000, Ronald establishes a joint savings account with his cousin, Allison. In year 2, Allison withdraws the $100,000 and leaves the country. Ronald made a gift to Allison in year 2.

Accepted Answer

A) True 
 B)False

Question 19

An individual generally tries to reduce the present value of any Federal transfer tax liability.

Accepted Answer

A) True 
 B)False

Question 20

Which, if any, of the following items is subject to indexation adjusted to reflect inflation) ?

Accepted Answer

A)   The election to split gifts under § 2513.
B)   The limitation placed on the amount allowed as a charitable contribution for estate tax purposes § 2055) .
C)   Annual gift tax exclusion.
D)   Unified transfer tax rates.E) B) and C)
F) A) and C)

Exam 18: The Federal Gift and Estate Taxes

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Alternate valuation date

Correct Answer
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Classify each of the following statements: -Under a prenuptial agreement, Herbert transfers stock to Norma. One month later, Herbert and Norma are married.

Correct Answer
verified

Classify each statement appropriately. -Casualty loss to property before the death of the owner.

Correct Answer
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Classify each of the following independent statements:. -State income tax refund received after death on a tax return filed before death.

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

Correct Answer
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A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.

Correct Answer
verified

At the time of his death, Raul owned a residence with his wife, Manuela, as joint tenants. Manuela purchased the residence 10 years ago at a cost of $300,000; it now has a fair market value of $1.4 million. Raul's estate will be allowed no marital deduction as to the property.

Correct Answer
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Classify each of the following statements. -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace later withdraws all of the funds.

Correct Answer
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Harry and Brenda are husband and wife. Using her funds, Brenda purchases real estate that she lists as: "Harry and Brenda, joint tenants with right of survivorship." If Brenda dies first, all of the value of the real estate is included in her gross estate.

Correct Answer
verified

Which, if any, of the following items is subject to indexation adjusted to reflect inflation) ?

Correct Answer
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Match each statement with the correct choice. Some choices may be used more than once or not at all. -Exclusion amount

Correct Answer
verified

Peggy gives $200,000 to her grandson. This is an example of a direct skip for purposes of the generation-skipping transfer tax GSTT).

Correct Answer
verified

Correct Answer
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a. When the tenancy was created, Kelly m...
View Answer

A lifetime transfer that is supported by full and adequate consideration is not a gift.

Correct Answer
verified

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

Correct Answer
verified

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

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

Classify each of the following statements. -Meg gives her 18-year-old son money for his college tuition and living expenses e.g., room and board) .

Correct Answer
verified

An individual generally tries to reduce the present value of any Federal transfer tax liability.

Correct Answer
verified

In year 1 and with $100,000, Ronald establishes a joint savings account with his cousin, Allison. In year 2, Allison withdraws the $100,000 and leaves the country. Ronald made a gift to Allison in year 2.

Correct Answer
verified

Exam 18: The Federal Gift and Estate Taxes

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Alternate valuation date

Correct AnswerverifiedShow Answer

Classify each of the following statements: -Under a prenuptial agreement, Herbert transfers stock to Norma. One month later, Herbert and Norma are married.

Correct AnswerverifiedShow Answer

Classify each statement appropriately. -Casualty loss to property before the death of the owner.

Correct AnswerverifiedShow Answer

Classify each of the following independent statements:. -State income tax refund received after death on a tax return filed before death.

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

A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.

Correct AnswerverifiedShow Answer

At the time of his death, Raul owned a residence with his wife, Manuela, as joint tenants. Manuela purchased the residence 10 years ago at a cost of $300,000; it now has a fair market value of $1.4 million. Raul's estate will be allowed no marital deduction as to the property.

Correct AnswerverifiedShow Answer

Classify each of the following statements. -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Horace later withdraws all of the funds.

Correct AnswerverifiedShow Answer

Harry and Brenda are husband and wife. Using her funds, Brenda purchases real estate that she lists as: "Harry and Brenda, joint tenants with right of survivorship." If Brenda dies first, all of the value of the real estate is included in her gross estate.

Correct AnswerverifiedShow Answer

Which, if any, of the following items is subject to indexation adjusted to reflect inflation) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Peggy gives $200,000 to her grandson. This is an example of a direct skip for purposes of the generation-skipping transfer tax GSTT).

Correct AnswerverifiedShow Answer

Correct Answerverifieda. When the tenancy was created, Kelly m...View AnswerShow Answer

A lifetime transfer that is supported by full and adequate consideration is not a gift.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Classify each of the following statements. -Meg gives her 18-year-old son money for his college tuition and living expenses e.g., room and board) .

Correct AnswerverifiedShow Answer

An individual generally tries to reduce the present value of any Federal transfer tax liability.

Correct AnswerverifiedShow Answer

In year 1 and with $100,000, Ronald establishes a joint savings account with his cousin, Allison. In year 2, Allison withdraws the $100,000 and leaves the country. Ronald made a gift to Allison in year 2.

Correct AnswerverifiedShow Answer

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a. When the tenancy was created, Kelly m...
View Answer

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