Exam 25: Transfer Taxes and Wealth Planning

At her death Serena owned real estate worth $210,000 with her spouse in joint tenancy with the right of survivorship. Serena contributed $50,000 to the original cost of the property and her spouse contributed the remaining $100,000. What amount, if any, is included in Serena's gross estate?

At her death Siena owned real estate worth $200,000 that was titled with her sister in joint tenancy with the right of survivorship. Siena contributed $50,000 to the total cost of the property and her sister contributed the remaining $75,000. What amount, if any, is included in Siena's gross estate?

A serial gift strategy consists of arranging a trust to maximize the value of the applicable credit.

The federal transfer taxes are calculated using cumulative lifetime transfers.

Matthew and Addison are married and live in Michigan, a common-law state. For the holidays Addison gave cash gifts of $42,250 to each of her two sons, and Matthew gave $42,700 to his daughter. What is the amount of Addison's taxable gifts if Matthew and Addison opt to gift-split?

The annual exclusion applies to cumulative gifts made to each donee over the course of the year.

Isaac is married and Isaac and his spouse agree that they want to transfer the maximum amount of cash to each of their four children and six grandchildren. How much cash in total can Isaac and his spouse transfer to his children and grandchildren each year without creating any taxable gifts?

At his death in 2020, Nathan owned the following property: The real estate is subject to a $1,825,000 mortgage and Nathan made taxable gifts in 2009 totaling $3.0 million, at which time he offset the gift tax with an applicable credit (exemption equivalent of $3.0 million). Nathan has never been married. What is the amount of his estate tax due? (Use Exhibit 25-1.)

Which of the following is a true statement about the federal gift tax return (Form 709)?

Both spouses must consent to any gift-splitting election.

Which of the following is a true statement?

At his death Trevor had a probate estate consisting of $4 million of property. Which of the following is a true statement about Trevor's estate or estate tax?

Including adjusted taxable gifts in the taxable estate causes these gifts to be taxed twice, once under the gift tax and again under the estate tax.

An exemption equivalent is the amount of annual gifts that is automatically exempt from the gift tax.

At her death Serena owned real estate worth $345,000 with her spouse in joint tenancy with the right of survivorship. Serena contributed $69,000 to the original cost of the property and her spouse contributed the remaining $138,000. What amount, if any, is included in Serena's gross estate?

Adjusted taxable gifts are added to the taxable estate to accomplish which of the following objectives?

The estate and gift taxes share several common features. Which of the following characteristics is common to both the estate and gift taxes?

For 2020, the exemption equivalent for the estate tax is $11.58 million.

Which of the following is a true statement?

The gift tax is imposed on inter vivos (lifetime)transfers.