Exam 13: The Estate Tax

Betty dies on February 20, 2013. Her estate consisted of the following assets, all valued as of her date death: Stock with a basis of $40,000 and a fair market value of $200,000 Home valued at $1,500,000 and a basis of $490,000 Cash of $70,000 Life insurance on Betty's life owned by her daughter with a $500,000 face value What is Betty's gross estate?

The FMV of an asset for gift or estate tax purposes is the same except for

The GSTT's (generation- skipping transfer tax) purpose is

The alternate valuation date is generally

Compare the credits available for estate tax purposes with the credits available for gift tax purposes. What differences exist?

A special power of appointment exists if the holder can exercise the power in favor of himself or herself, his or her creditors, or the creditors of his or her estate.

One of the major problems facing executors in managing the estate is

Identify which of the following statements is true.

Appraisal methods used to value real estate for estate tax purposes may include

Donna died on June 1 of the current year. The executor considers the following information when preparing her tax return: • In 1997, Donna transfers title to her personal residence to her son. The residence is worth $60,000 on the tran date. Donna continued to live alone in the residence until her death. She did not pay any rent. At her death, the r is worth $100,000. • In 1998, Donna created an irrevocable trust and funded it with $300,000 of assets. Donna names a bank as trustee. According to the trust agreement, all the trust income is to be paid out annually for 25 years. The trustee, however, is to decide how much income to pay each year to Donna's son and daughter. Upon termination of the trust, the assets are to be distributed equally among her two children or their estates. The trust's assets are worth $320,000 when Donna dies. • In 1998, Donna created a revocable trust with a bank named as trustee. She named her grandchild Joe as the beneficiary for life. Upon Joe's death, the property is to be distributed equally among Joe's descendants. The trus are worth $300,000 when Donna dies. How much would be included in Donna's gross estate?

Identify which of the following statements is false.

Identify which of the following statements is false.

Which of the following circumstances would cause the gifted property to be included in the donor's estate? I. Donor retains a life estate in the gift property. II) Donor retains the power to revoke or amend the gift. III) Donor gives more than $14,000 to one donee in one year. IV) Donor dies within three years of gifting land.

In 2017, Paul transfers $1,000,000 to a trust benefiting his three children. As trustee, he has the power to determine the amount of distributions each year. Paul dies in the current year when the trust has a value of $1,200,000. How much of the trust's value is included in Paul's estate?

Identify which of the following statements is true.

The payment date for estate taxes may be extended by the IRS for all of the following reasons except

A qualified disclaimer is a valuable estate planning tool because

Listed stocks are valued at their closing price on the date of death.

The maximum amount of the stock redemption proceeds under Sec. 303 is determined by summing all of the following except

Discuss the transferor provisions relating to the estate tax, and provide three examples of transactions governed by the transferor provisions.