Question 1

A withdrawal of money from a bank account held in joint tenancy with the right of survivorship may constitute a completed gift.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following transfers is a completed gift?

Accepted Answer

A)  Payment of child support by a former spouse. 
B)  Transfer of property to a revocable trust. 
C)  Transfer of cash to a bank account held in joint tenancy with the right of survivorship. 
D)  Income paid to the beneficiary of a revocable trust. 
E)  None of the choices is a completed gift. 
A)  Payment of child support by a former spouse. 
B)  Transfer of property to a revocable trust. 
C)  Transfer of cash to a bank account held in joint tenancy with the right of survivorship. 
D)  Income paid to the beneficiary of a revocable trust. 
E)  None of the choices is a completed gift.

Question 3

James and Jasmine live in a community property state.This year they transferred $800,000 of property to an irrevocable trust that provides their son,Aaron,a life estate and their daughter,Lauren,the remainder.At the time of the gift,the Table S value for Aaron was .18031.What is the amount,if any,of the taxable gifts?

Accepted Answer

James and Jasmine each made taxable gift

Question 4

Harold and Mary are married and live in a community property state.During the marriage Harold bought a parcel of real estate for $100,000 in community funds and titled the property in his name alone.Mary died on January 30th of this year and was survived by Harold who did not remarry.The parcel of real property was worth $250,000 on January 30th of this year but was only worth $220,000 at year end.What amount,if any,is included in Mary's gross estate?

Accepted Answer

A)  $250,000. 
B)  $220,000. 
C)  $125,000. 
D)  $110,000. 
E)  zero-Mary had no ownership interest in the property at her death. 
A)  $250,000. 
B)  $220,000. 
C)  $125,000. 
D)  $110,000. 
E)  zero-Mary had no ownership interest in the property at her death.

Question 5

At her death,Emily owned real estate worth $2.5 million and other property worth $1 million.Property taxes of $200,000 were accrued on the real estate at the time of Emily's death.Which of the following is a true statement with respect to these items without considering any other owned property?

Accepted Answer

A)  Emily's gross estate is $3.3 million. 
B)  Emily's taxable estate is $3.5 million. 
C)  Emily's adjusted gross estate is $3.3 million. 
D)  Emily's estate tax base is $3.5 million. 
E)  None of the choices are true. 
A)  Emily's gross estate is $3.3 million. 
B)  Emily's taxable estate is $3.5 million. 
C)  Emily's adjusted gross estate is $3.3 million. 
D)  Emily's estate tax base is $3.5 million. 
E)  None of the choices are true.

Question 6

At his death in 2017,Nathan owned the following property:
   The real estate is subject to a $1,700,000 mortgage and Nathan made taxable gifts in 2009 totaling $2 million at which time he offset the gift tax with an applicable credit (exemption equivalent of $2 million).Nathan has never been married.What is the amount of his estate tax due? (Use Exhibit 14-1)

Accepted Answer

$4.20 million
Nathan has a tax

Question 7

When creating an estate tax planning strategy,the income tax benefit derived from a step-up in tax basis on assets should be measured against the estate tax cost of including the assets in the decedent's gross estate.

Accepted Answer

A) True 
 B)False

Question 8

Caleb transferred $115,000 to an irrevocable trust for Avery.The trustee has the discretion to distribute income or corpus for Avery's benefit but is required to distribute all assets to Avery (or his estate)not later than Avery's 21st birthday.What is the amount,if any,of the taxable gift?

Accepted Answer

$101,000
Caleb will be entitled to an an

Question 9

A transfer of a terminable interest will not generally qualify for a marital deduction.

Accepted Answer

A) True 
 B)False

Question 10

Andrew and Brianna are married and live in Texas,a community property state.For their birthdays this year Andrew gave cash gifts of $20,000 to each of his two daughters,and Brianna gave $30,000 to her niece.What is the amount of Andrew's taxable gifts?

Accepted Answer

A)  $1,000. 
B)  $14,000. 
C)  $28,000. 
D)  zero if Andrew and Brianna elect to split gifts. 
E)  None of the choices are correct. 
A)  $1,000. 
B)  $14,000. 
C)  $28,000. 
D)  zero if Andrew and Brianna elect to split gifts. 
E)  None of the choices are correct.

Question 11

Both spouses must consent to any gift-splitting election.

Accepted Answer

A) True 
 B)False

Question 12

The debts of the decedent at the time of death are deducted in calculating the taxable estate.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The tax rate schedule on taxable transfers has a maximum tax rate of 40% for 2017.

Accepted Answer

A) True 
 B)False

Question 15

Gabriel had a taxable estate of $6 million when he died in 2017.Calculate the amount of estate tax due (if any)if Gabriel made prior taxable gifts in 2005 totaling $1 million at which time he claimed an applicable credit of $1 million and paid no tax.Gabriel was unmarried at his death.(Use Exhibit 14-1)

Accepted Answer

The answer of Gabriel had a taxable estate of $6...

Question 16

The applicable credit is designed to allow a minimum amount of lifetime transfers without triggering the imposition of a transfer tax.

Accepted Answer

A) True 
 B)False

Question 17

Chloe's gross estate consists of the following property valued at the date of death:   Chloe's real estate is encumbered by a mortgage of $450,000,and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000.Which of the following is a true statement?

Accepted Answer

A)  Chloe's adjusted gross estate is at least $7,020,000. 
B)  Chloe's taxable estate is at least $7,020,000. 
C)  Chloe's taxable estate is $7,050,000. 
D)  Chloe's estate will calculate the tentative estate tax on $7.5 million. 
E)  None of the choices are true. 
A)  Chloe's adjusted gross estate is at least $7,020,000. 
B)  Chloe's taxable estate is at least $7,020,000. 
C)  Chloe's taxable estate is $7,050,000. 
D)  Chloe's estate will calculate the tentative estate tax on $7.5 million. 
E)  None of the choices are true.

Question 18

Which of the following is a true statement?

Accepted Answer

A)  A remainder interest held by the decedent at the time of death is not included in the decedent's gross estate. 
B)  The value of a remainder interest depends in part on the Section 7520 interest rate at the time of death. 
C)  The value of a remainder interest in a life estate is independent of the age of the life tenant. 
D)  The value of a life estate does not depend upon the age of the life tenant. 
E)  None of the choices are true. 
A)  A remainder interest held by the decedent at the time of death is not included in the decedent's gross estate. 
B)  The value of a remainder interest depends in part on the Section 7520 interest rate at the time of death. 
C)  The value of a remainder interest in a life estate is independent of the age of the life tenant. 
D)  The value of a life estate does not depend upon the age of the life tenant. 
E)  None of the choices are true.

Question 19

Ava transferred $1.5 million of real estate into an irrevocable trust for her son,Luis.The trustee was directed to retain income until Luis' 21st birthday and then pay him the corpus of the trust.Ava retained the power to require the trustee to pay income to Luis at any time,and the right to the assets if Luis predeceased her.What amount of the trust,if any,will be included in Ava's estate if she died shortly after making the transfer?

Accepted Answer

$1.5 million
The value of the trust asse

Question 20

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?

Accepted Answer

A)  $50,000. 
B)  $125,000. 
C)  $80,000. 
D)  $100,000. 
E)  None of the choices are correct. 
A)  $50,000. 
B)  $125,000. 
C)  $80,000. 
D)  $100,000. 
E)  None of the choices are correct.

A withdrawal of money from a bank account held in joint tenancy with the right of survivorship may constitute a completed gift.

Which of the following transfers is a completed gift?

At her death,Emily owned real estate worth $2.5 million and other property worth $1 million.Property taxes of $200,000 were accrued on the real estate at the time of Emily's death.Which of the following is a true statement with respect to these items without considering any other owned property?

When creating an estate tax planning strategy,the income tax benefit derived from a step-up in tax basis on assets should be measured against the estate tax cost of including the assets in the decedent's gross estate.

Caleb transferred $115,000 to an irrevocable trust for Avery.The trustee has the discretion to distribute income or corpus for Avery's benefit but is required to distribute all assets to Avery (or his estate)not later than Avery's 21^st birthday.What is the amount,if any,of the taxable gift?

A transfer of a terminable interest will not generally qualify for a marital deduction.

Andrew and Brianna are married and live in Texas,a community property state.For their birthdays this year Andrew gave cash gifts of $20,000 to each of his two daughters,and Brianna gave $30,000 to her niece.What is the amount of Andrew's taxable gifts?

Both spouses must consent to any gift-splitting election.

The debts of the decedent at the time of death are deducted in calculating the taxable estate.

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

The tax rate schedule on taxable transfers has a maximum tax rate of 40% for 2017.

The applicable credit is designed to allow a minimum amount of lifetime transfers without triggering the imposition of a transfer tax.

Chloe's gross estate consists of the following property valued at the date of death: Chloe's real estate is encumbered by a mortgage of $450,000,and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000.Which of the following is a true statement?

Which of the following is a true statement?

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?

Business Income,Deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Neorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

Filters

Exam 14: Transfer Taxes and Wealth Planning

A withdrawal of money from a bank account held in joint tenancy with the right of survivorship may constitute a completed gift.

Which of the following transfers is a completed gift?

At her death,Emily owned real estate worth $2.5 million and other property worth $1 million.Property taxes of $200,000 were accrued on the real estate at the time of Emily's death.Which of the following is a true statement with respect to these items without considering any other owned property?

When creating an estate tax planning strategy,the income tax benefit derived from a step-up in tax basis on assets should be measured against the estate tax cost of including the assets in the decedent's gross estate.

Caleb transferred $115,000 to an irrevocable trust for Avery.The trustee has the discretion to distribute income or corpus for Avery's benefit but is required to distribute all assets to Avery (or his estate)not later than Avery's 21st birthday.What is the amount,if any,of the taxable gift?

A transfer of a terminable interest will not generally qualify for a marital deduction.

Andrew and Brianna are married and live in Texas,a community property state.For their birthdays this year Andrew gave cash gifts of $20,000 to each of his two daughters,and Brianna gave $30,000 to her niece.What is the amount of Andrew's taxable gifts?

Both spouses must consent to any gift-splitting election.

The debts of the decedent at the time of death are deducted in calculating the taxable estate.

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

The tax rate schedule on taxable transfers has a maximum tax rate of 40% for 2017.

The applicable credit is designed to allow a minimum amount of lifetime transfers without triggering the imposition of a transfer tax.

Chloe's gross estate consists of the following property valued at the date of death: Chloe's real estate is encumbered by a mortgage of $450,000,and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000.Which of the following is a true statement?

Which of the following is a true statement?

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?

Business Income,Deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Neorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

Filters

Caleb transferred $115,000 to an irrevocable trust for Avery.The trustee has the discretion to distribute income or corpus for Avery's benefit but is required to distribute all assets to Avery (or his estate)not later than Avery's 21^st birthday.What is the amount,if any,of the taxable gift?