1. Which of the following statements concerning federalgift and estate taxes is (are) correct?
I. The donorâs gross estate includes the amount of any gifttaxes paid by the donor on gifts made within 3 years of death.
II. Gifts made within 3 years of death are brought back into thedonorâs gross estate.
a) I only
b) II only
c) Both I and II
d) Neither I nor II
2. Which of the following statements concerning statedeath taxes is (are) correct?
I. The federal state death tax deduction is allowed only if afederal estate tax Form 706 return must be filed.
II. State estate and inheritance taxes are generally imposed atthe same rate regardless of the relationship of the deceased to thebeneficiary.
a) I only
b) II only
c) Both I and II
d) Neither I nor II
3. Important factors in assessing liquidity needs inestate planning include which of the following?
I. the amount and terms of debt of the estate owner
II. the marital status of the testator
a) I only
b) II only
c) Both I and II
d) Neither I nor II
4. Non-tax benefits of lifetime gifts include which ofthe following?
I. obtaining privacy that is not possible when testamentarytransfers are made
II. reducing probate and administrative costs
a) I only
b) II only
c) Both I and II
d) Neither I nor II
| 1. Which of the following statements concerning federalgift and estate taxes is (are) correct? I. The donorâs gross estate includes the amount of any gifttaxes paid by the donor on gifts made within 3 years of death. II. Gifts made within 3 years of death are brought back into thedonorâs gross estate. a) I only b) II only c) Both I and II d) Neither I nor II |
| 2. Which of the following statements concerning statedeath taxes is (are) correct? I. The federal state death tax deduction is allowed only if afederal estate tax Form 706 return must be filed. II. State estate and inheritance taxes are generally imposed atthe same rate regardless of the relationship of the deceased to thebeneficiary. a) I only b) II only c) Both I and II d) Neither I nor II |
| 3. Important factors in assessing liquidity needs inestate planning include which of the following? I. the amount and terms of debt of the estate owner II. the marital status of the testator a) I only b) II only c) Both I and II d) Neither I nor II |
| 4. Non-tax benefits of lifetime gifts include which ofthe following? I. obtaining privacy that is not possible when testamentarytransfers are made II. reducing probate and administrative costs a) I only b) II only c) Both I and II d) Neither I nor II |
Related questions
| 1. The failure of an individual to have a will canresult in which of the following? I. Favorite relatives may be disinherited II. Testamentary gifts to charity cannot be made. a) I only b) II only c) Both I and II d) Neither I nor II |
| 2. Which of the following statements concerning a validwritten will is (are) correct? I. A testatorâs signature must be notarized when the will isexecuted II. A testator must have testamentary capacity at the time ofdeath a) I only b) II only c) Both I and II d) Neither I nor II |
| 3. Which of the following statements concerning theinstallment sale of property is (are) correct? I. The interest rate agreed to by the parties to the sale isconclusive for tax purposes. II. The gain on the sale is recognized by the seller ratably asthe installment payments are received. a) I only b) II only c) Both I and II d) Neither I nor II |
| 4. An executor may value assets as of the date of deathor the alternate valuation date 6 months after death. Assuming theexecutor elects the alternate valuation date, which of thefollowing statements is (are) correct? I. Property sold by the executor before the alternate valuationdate is valued at its armâs-length sale price. II. Property that has increased in value since the date of deathis valued at the alternate valuation date. a) I only b) II only c) Both I and II d) Neither I nor II |
| 1. Which of the following statements concerningqualified disclaimers of gifted property is (are)correct? I. The disclaimer must be in writing. II. The person making the disclaimer may direct who is to be therecipient of the giftedproperty. a) I only b) II only c) Both I and II d) Neither I nor II |
| 2. Which of the following statements concerninggrantor-retained annuity trusts (GRATs) is (are)correct? I. These trusts provide the grantor with a fixed annual annuityfor a term of years or life II. A goal in establishing a GRAT is to transfer property at areduced transfer tax cost. a) I only b) II only c) Both I and II d) Neither I nor II |
| 3. Which of the following statements concerningvaluation for gift tax purposes is (are) correct? I. The value of a life insurance contract is equal to theaggregate gross premium paid, regardless of when the contract wasgifted. II. If blockage exists, a lower gift value is permitted forshares of stock because of the effect of dumping a large number ofshares on the market at one time. a) I only b) II only c) Both I and II d) Neither I nor II |
| 4. Which of the following statements concerning wills is(are) correct? I. A will may be revoked by the testator prior to his or herdeath. II. An adult child may be disinherited entirely by a parent inmost states. a) I only b) II only c) Both I and II d) Neither I nor II |
