Exam 12: Estates, Gifts, and Trusts

Chloe gave $16,000 to her son, $21,000 to her daughter, and paid $18,000 to the University of Delaware for her niece's tuition. She gave $12,000 to the United Way campaign, and $18,000 to her church. What is the amount of Chloe's taxable gifts?

William set up a trust for his parents. Each parent is to receive one-half of the income for his or her lifetime; when one parent dies, all income is to go to the surviving parent. When the other parent dies, the remainder is to go to William. This trust is

The tax on generation skipping transfers has been repealed.

Which of the following is an advantage to making a lifetime transfer of property to a donee?

Which of the following statements does not apply to a revocable trust?

Probate determines the property included in a decedent's taxable estate.

Which of the following statements is true regarding the filing of a gift tax return?

Indicate by a T if the following results in a taxable gift and an N if it does not result in a taxable gift. -John put $50,000 of his money into a joint bank account with his son

The gift tax and estate taxes were imposed in 1932 and 1916, respectively.

The basic deduction allowed on an estate income tax return is

What is a remainderman?

Only gift taxes of a present interest in property are eligible for the unified credit.

Gift splitting allows a married couple to use both their annual exclusions in determining taxable gifts.

Crystal deposited $50,000 into a joint savings account in her name and the name of her son, Jason. Later that same year, Jason withdrew $16,000 from the account. If Crystal made no other gifts to Jason during that year, what is the value of Crystal's taxable gifts (before applying the unified credit)?

What is the alternative valuation date? What limit is placed on its use?

Carl gave his six children gifts of $16,000 each in the current year.

No estate tax is due if a husband leaves his entire estate to his wife.

The following gifts could be subject to the generation skipping transfer tax except:

Shoshone sold her home to her son and his wife as joint tenants for $100,000. The home had been appraised at $150,000. She sold her daughter an auto valued at $10,900 for $500 and she took her sister on a vacation and paid all of her sister's expenses that amounted to $7,000. What is the total of Shoshone's taxable gifts? Explain.

Indicate by a T if the following results in a taxable gift and an N if it does not result in a taxable gift. -$20,000 transferred into Crummy trust with gift splitting elected.