Exam 18: The Federal Gift and Estate Taxes

Classify each of the independent statements appearing below -Decedent owned a policy on the life of his spouse with himself as the designated beneficiary. The spouse survives.

A Federal gift tax return does not have to be filed if no gift tax is payable.

Classify each statement appearing below -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Nadine predeceases Horace.

Concerning the election to split gifts under § 2513, which of the following statements is incorrect?

Andrea dies on April 30, 2015. Which, if any, of the following items is included in her gross estate?

At the time of his death, Hal owned 10 cemetery lots worth $40,000 ($4,000 each) for use by himself and his family. These lots are not included in Hal's gross estate and no deduction is allowed the estate.

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

Classify each statement appearing below -In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Classify each statement appropriately -Casualty loss to property already distributed to an heir.

The current top Federal transfer tax rate of 40% is the highest rate ever imposed.

The purpose of the marital deduction is to place married decedents in common law states on par with those in community property jurisdictions.

Classify each of the independent statements appearing below -Surviving spouse's share of the community property.

Which, if any, of the following statements correctly reflects the rules applicable to the alternate valuation date ?

Classify each statement appearing below -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.

Match each statement with the correct choice. Some choices may be used more than once or not at all -Alternate valuation date (§ 2032)

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

Classify each of the independent statements appearing below -Land held as tenants by the entirety with surviving spouse. Decedent provided none of the funds.

Waldo is his mother's sole heir and is the designated executor of her estate. Although the alternate valuation date would yield a smaller gross estate and less estate tax liability, the § 2032 election is not made. Instead, Waldo files a Form 706 for his mother's estate using higher date of death values. Why?

Becky made taxable gifts in 2013, 2014, and 2015. In computing the gift tax on the 2015 gift, she must consider all of the prior taxable gifts.

Barry pays State University for his dependent daughter's room and board. Barry has made a transfer that is subject to the Federal gift tax.