QUESTION 36

Which of the following is not a gift which qualifies for the annual exclusion?

Deena transfers her car with a value of $10,000 to her son Edward.

Deena transfers stock worth $200,000 to a trust with income payable to her for life and the remainder to her son Edward.

Deena transfers property to a trust for the benefit of her minor son Francis. No income is payable to Francis until he reaches the age of 21, but the trust provisions permit him to demand withdrawal of the amount of annual contributions to the trust up to the amount of the annual exclusion.

Two of the above.

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QUESTION 37

Which of the following would qualify for a gift-splitting?

Herbert and his wife Kelly transfer stock worth $30,000 to their son Ignatius.

Jakob and his wife Mariska, a Hungarian citizen living in Hungary, transfer stock worth $30,000 to their son Istvan.

Louise and Marv transfer stock worth $30,000 to their son Nels before their divorce, although Louise has since remarried.

None of the above.

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QUESTION 38

Which of the following would most likely be included in the decedent’s gross estate?

$100,000 face value life insurance policy on the life of the decedent’s brother.

$100,000 undistributed retirement account balance.

$100,000 bank account held as joint tenants with rights of survivorship with the decedent’s spouse.

All of the above.

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QUESTION 39

Oscar dies on February 2, 2016. The property included in his gross estate could be potentially valued for estate tax purposes:

on February 2, 2016.

on November 2, 2016.

on August 2, 2016.

Two of the above.

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QUESTION 40

Life insurance proceeds will most likely be included in the estate of Peter, a decedent, in which of the following situations?

The $500,000 policy proceeds are payable to an irrevocable insurance trust.

The $500,000 policy proceeds are on Peter’s death to his brother, Dominic.

The $500,000 policy, owned by Peter and insuring his life, was transferred to Peter’s brother a year before his death.

All of the above.

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QUESTION 41

Which of the following is an allowable deduction for federal estate tax purposes?

The $250,000 outstanding mortgage on Queenie’s house which is included in her gross estate.

A $50,000 bequest to Queenie’s alma mater, Fairfield University.

The $10,000 payment of medical expenses incurred by Queenie before her death, but not deducted on the estate income tax return.

All of the above.

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QUESTION 42

The unified transfer tax due at the decedent’s death is computed on what tax base?

The decedent’s gross taxable estate.

The decedent’s gross taxable estate plus total lifetime gifts made after 1976.

The decedent’s gross taxable estate less total lifetime gifts made after 1976.

The decedent’s gross taxable estate plus total lifetime gifts whenever made.

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QUESTION 43

Which of the following credits is permitted in determining the unified transfer tax due?

The state death tax credit.

A credit for estate transfer taxes paid on property included in the decedent’s estate which was also included in a decedent’s estate 12 years prior.

A unified credit amount of $2,125,800.

A unified credit amount of $345,800.

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QUESTION 44

Roberta gives stock to her son Stephen with an adjusted basis of $10,000 and a fair market value of $15,000 on the date of gift. Six months later Stephen sells the stock for $8,000. Stephen’s basis in the stock is:

$8,000.

$15,000.

$10,000.

$15,000 but limited to $12,000.

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QUESTION 45

Which of the following is an estate planning tool designed to minimize probate costs?

Purchasing an annuity that is payable to one’s spouse on the owner’s death.

Allowing property to pass by intestate succession.

Creating a revocable living trust, but funding the trust with a pour-over provision in the decedent’s will.

None of the above.