Question 1

A terminable interest is one that ceases upon the passage of time or the occurrence of some event.

Accepted Answer

A) True 
 B)False

Question 2

Proceeds of a life insurance policy payable to the estate's executor,as the estate's representative,are

Accepted Answer

A)  includible in the decedent's gross estate only if the premiums had been paid by the insured. 
B)  includible in the decedent's gross estate only if the policy was taken out within three years of the insured's death. 
C)  never includible in the decedent's gross estate. 
D)  always includible in the decedent's gross estate. 
A)  includible in the decedent's gross estate only if the premiums had been paid by the insured. 
B)  includible in the decedent's gross estate only if the policy was taken out within three years of the insured's death. 
C)  never includible in the decedent's gross estate. 
D)  always includible in the decedent's gross estate.

Question 3

In 2002,Gert made a $5,000,000 taxable gift.The 2002 gift tax on $5,000,000 was $2,275.800.Gert was entitled to a unified credit of $345,800,resulting in a gift tax of $1,193,000.The marginal tax rate in 2002 is 50%.Assume Gert dies in 2013 when the credit is $2,045.800 and the marginal rate is 40%,the tax on $5,000,000 would equal $1,945,800 before subtracting any credit.In arriving at Gert's estate tax liability,what is the amount subtracted for 1992 gift taxes paid?

Accepted Answer

$1,600,000 = $1,945,800 ($5,00

Question 4

Five years ago,George and Jerry (his brother)provide $40,000 and $60,000,respectively,to purchase realty titled in the names of George and Jerry as joint tenants with right of survivorship.George dies in the current year and is survived by Jerry.At the time of George's death,the realty is valued at $300,000.What is the value of the realty in George's gross estate?

Accepted Answer

$300,000 × ($40,000

Question 5

Briefly discuss how inter vivos gifts can be used to reduce the size of the estate tax base.

Accepted Answer

The $14,000 per-donee per-year exclusion

Question 6

The gross-up rule requires

Accepted Answer

A)  all beneficial interests be included in the decedent's estate. 
B)  post-1976 gifts by the decedent be included in the decedent's estate. 
C)  certain gifts made by the decedent within three years of the date of death are included in the decedent's gross estate. 
D)  gift taxes on gifts made by the decedent or the decedent's spouse that are paid by the decedent or his estate during the three-year period ending with the decedent's date of death must be included in the decedent's gross estate. 
A)  all beneficial interests be included in the decedent's estate. 
B)  post-1976 gifts by the decedent be included in the decedent's estate. 
C)  certain gifts made by the decedent within three years of the date of death are included in the decedent's gross estate. 
D)  gift taxes on gifts made by the decedent or the decedent's spouse that are paid by the decedent or his estate during the three-year period ending with the decedent's date of death must be included in the decedent's gross estate.

Question 7

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

Accepted Answer

They apply if the decedent earlier made

Question 8

Dan transfers an apartment building to Grace but retains the right to the rental income for 10 years.Dan dies nine years after the transfer when the building is worth $600,000.The applicable federal rate is 10% and the reversionary actuarial factor is 0.30.How much would be included in Dan's estate?

Accepted Answer

A)  $0 
B)  $150,000 
C)  $350,000 
D)  $600,000 
A)  $0 
B)  $150,000 
C)  $350,000 
D)  $600,000

Question 9

An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until 6 months after the interests of the other person(s)terminate.

Accepted Answer

A) True 
 B)False

Question 10

Melissa transferred $650,000 in trust in 2006: income for life to herself,the remainder to her son.What part,if any,of the value of the trust's assets will be included in Melissa's estate?

Accepted Answer

The entire trust wil

Question 11

Ted died on May 3.At the time of his death,he owned a beach house valued at $250,000.On June 10,the beach house was completely destroyed by a hurricane and there was no insurance coverage.If the executor elects to use the alternate valuation date,the executor will

Accepted Answer

A)  include the beach house in the gross estate at $250,000. 
B)  take a casualty loss of $250,000 on the estate tax return. 
C)  take a casualty loss of $250,000 on the estate's income tax return. 
D)  include the beach house in the gross estate at $0. 
A)  include the beach house in the gross estate at $250,000. 
B)  take a casualty loss of $250,000 on the estate tax return. 
C)  take a casualty loss of $250,000 on the estate's income tax return. 
D)  include the beach house in the gross estate at $0.

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

Identify which of the following statements is true.

Accepted Answer

A)  Regardless of how large the gross estate is, the estate tax liability can be completely eliminated if the estate is willed to a charitable organization. 
B)  There is a ceiling on the marital deduction. 
C)  All transfers to the surviving spouse are eligible for the marital deduction. 
D)  All of the above are false. 
A)  Regardless of how large the gross estate is, the estate tax liability can be completely eliminated if the estate is willed to a charitable organization. 
B)  There is a ceiling on the marital deduction. 
C)  All transfers to the surviving spouse are eligible for the marital deduction. 
D)  All of the above are false.

Question 14

Which of the following is not a credit for purposes of computing the federal estate tax liability?

Accepted Answer

A)  credit for gift tax paid on pre-1977 gifts 
B)  credit for estate taxes paid on certain prior transfers 
C)  a credit for foreign death taxes 
D)  All of the above are credits for the federal estate tax. 
A)  credit for gift tax paid on pre-1977 gifts 
B)  credit for estate taxes paid on certain prior transfers 
C)  a credit for foreign death taxes 
D)  All of the above are credits for the federal estate tax.

Question 15

Identify which of the following statements is true.

Accepted Answer

A)  The credit for taxes paid on prior transfers does not reduce the impact of property being taxed in more than one estate in quick succession. 
B)  The deduction for state death taxes is not limited. 
C)  An estate is not entitled to a credit for foreign death taxes paid on property located in a foreign country and included in the gross estate. 
D)  All of the above are false. 
A)  The credit for taxes paid on prior transfers does not reduce the impact of property being taxed in more than one estate in quick succession. 
B)  The deduction for state death taxes is not limited. 
C)  An estate is not entitled to a credit for foreign death taxes paid on property located in a foreign country and included in the gross estate. 
D)  All of the above are false.

Question 16

Outline and briefly describe the estate tax computation,beginning with the gross estate.

Accepted Answer

Sum of: Property tit

Question 17

Identify which of the following statements is true.

Accepted Answer

A)  In general, an estate tax return is not required to be filed unless the value of the gross estate and adjusted taxable gifts exceeds the exemption equivalent. 
B)  Estate taxes must be paid when the return is filed, including any extensions. 
C)  The estate tax return is due, ignoring extensions, 12 months after the decedent's date of death. 
D)  All of the above are false. 
A)  In general, an estate tax return is not required to be filed unless the value of the gross estate and adjusted taxable gifts exceeds the exemption equivalent. 
B)  Estate taxes must be paid when the return is filed, including any extensions. 
C)  The estate tax return is due, ignoring extensions, 12 months after the decedent's date of death. 
D)  All of the above are false.

Question 18

Lily dies early in the current year.All her property passes subject to her will,which provides that her surviving husband,Rick,is to receive all the property outright.Her will further states that any property Rick disclaims will pass instead to their children in equal shares.Lily's gross estate is about $5 million,and her Sec.2053 deductions are very small.Rick,who is in poor health,already owns about $3 million of property.What tax issues should Rick consider with respect to the property bequeathed to him by his wife?

Accepted Answer

• Should Rick consider making a disclaim

Question 19

Two years ago,Nils transfers a $200,000 life insurance policy on his life to his daughter,Gail.The policy is worth $60,000 at the time of transfer and Gail pays Nils $50,000.When Nils dies this year,the $50,000 cash is still in a savings account.The consideration offset when computing Nils's gross estate is

Accepted Answer

A)  $0. 
B)  $50,000. 
C)  $150,000. 
D)  $166,667. 
A)  $0. 
B)  $50,000. 
C)  $150,000. 
D)  $166,667.

Question 20

Identify which of the following statements is true.

Accepted Answer

A)  If a marital deduction is elected on a QTIP trust transfer, property remaining in the QTIP trust is not included in the estate of the surviving spouse. 
B)  The credit for state death taxes has been replaced with a deduction for state estate taxes. 
C)  The unified credit is the only credit allowed against the estate tax. 
D)  All of the above are false. 
A)  If a marital deduction is elected on a QTIP trust transfer, property remaining in the QTIP trust is not included in the estate of the surviving spouse. 
B)  The credit for state death taxes has been replaced with a deduction for state estate taxes. 
C)  The unified credit is the only credit allowed against the estate tax. 
D)  All of the above are false.

A terminable interest is one that ceases upon the passage of time or the occurrence of some event.

Proceeds of a life insurance policy payable to the estate's executor,as the estate's representative,are

Briefly discuss how inter vivos gifts can be used to reduce the size of the estate tax base.

The gross-up rule requires

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

Dan transfers an apartment building to Grace but retains the right to the rental income for 10 years.Dan dies nine years after the transfer when the building is worth $600,000.The applicable federal rate is 10% and the reversionary actuarial factor is 0.30.How much would be included in Dan's estate?

An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until 6 months after the interests of the other person(s)terminate.

Melissa transferred $650,000 in trust in 2006: income for life to herself,the remainder to her son.What part,if any,of the value of the trust's assets will be included in Melissa's estate?

Ted died on May 3.At the time of his death,he owned a beach house valued at $250,000.On June 10,the beach house was completely destroyed by a hurricane and there was no insurance coverage.If the executor elects to use the alternate valuation date,the executor will

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.

Identify which of the following statements is true.

Which of the following is not a credit for purposes of computing the federal estate tax liability?

Identify which of the following statements is true.

Outline and briefly describe the estate tax computation,beginning with the gross estate.

Identify which of the following statements is true.

Identify which of the following statements is true.

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

US Corporations

The Gift Tax

Income Taxation of Trusts and Estates

Administrative Procedures

US Taxation of Foreign-Related Transactions

Filters

Exam 13: The Estate Tax

A terminable interest is one that ceases upon the passage of time or the occurrence of some event.

Proceeds of a life insurance policy payable to the estate's executor,as the estate's representative,are

Briefly discuss how inter vivos gifts can be used to reduce the size of the estate tax base.

The gross-up rule requires

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

An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until 6 months after the interests of the other person(s)terminate.

Melissa transferred $650,000 in trust in 2006: income for life to herself,the remainder to her son.What part,if any,of the value of the trust's assets will be included in Melissa's estate?

Ted died on May 3.At the time of his death,he owned a beach house valued at $250,000.On June 10,the beach house was completely destroyed by a hurricane and there was no insurance coverage.If the executor elects to use the alternate valuation date,the executor will

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.

Identify which of the following statements is true.

Which of the following is not a credit for purposes of computing the federal estate tax liability?

Identify which of the following statements is true.

Outline and briefly describe the estate tax computation,beginning with the gross estate.

Identify which of the following statements is true.

Identify which of the following statements is true.

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

US Corporations

The Gift Tax

Income Taxation of Trusts and Estates

Administrative Procedures

US Taxation of Foreign-Related Transactions

Filters