Exam 15: Preserving Your Estate

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Estate taxes apply [only to transfers that a deceased makes at death | only to certain transfers made during a person's lifetime].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you consider wealth only,an individual with an estate expected to exceed [$3,500,000 | $5,430,000] in 2015 must consider estate planning.

The gift tax law allows a person to give gifts up to $13,000 tax free.

Insufficient capital can cause problems paying estate taxes.

The unified rate schedule applies to federal ____ taxes.

The federal estate tax applies to certain property transfers made during a person's lifetime.

This situation calls especially for an estate plan based on the people planning perspective.

If a person dies intestate (without a valid will),the estate is distributed according to established state laws of intestate succession.According to Utah's probate code (as described in Exhibit 15.4 of your textbook),what is the estate distribution for no spouse but offspring?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A(n)[living will | ethical will] includes a personal statement of your values,blessings,life's lessons,and hopes and dreams for the future.

Trusts facilitate the transfer of property and the income from that property to another party.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The unlimited marital deduction is available only if the recipient spouse is a [U.S.citizen and files a gift tax return | legal resident and does not have to file a gift tax return].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -For 2015,your net estate value must exceed [$3,560,000 | $5,340,000] before any federal estate taxes will be due.

To calculate the estate tax base,any adjusted taxable gifts are added to the taxable estate.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Claudia had not yet signed her newly written will when she died.The will [would | would not] be valid.

Gift tax liability could be incurred on which of the following transactions?

The revocation statement in a will directs the estate to make certain payments of expenses.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Busy executives | minors] do not need trust services.

One of the aspects of disposition of property consists of

A letter of last instructions could include which of the following?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Married | Unmarried] couples have the greater need for estate planning.