1. All the following forms of property interests givethe holder current possessory enjoyment rights EXCEPT
a) leasehold
b) vested remainder
c) life estate
d) fee simple absolute
2. All the following statements concerning the estatetaxation of life insurance proceeds are correct EXCEPT
a) The proceeds are included in an insuredâs gross estate if thepolicy is payable to his or her gross estate.
b) Group life insurance proceeds are treated in the same manneras individually owned insurance.
c) The proceeds are included in the insuredâs gross estate ifpayable to an inter vivos trust that is required to pay theexpenses of the insuredâs estate.
d) The proceeds must be excluded from the policy owner-insuredâsgross estate if payable to the surviving spouse because of themarital deduction.
3. All the following statements concerning the deferralof payment of estate tax under Sec. 6166 for estates that holdclosely held business interests are correct EXCEPT
a) The tax deferral is limited to the estate tax created by theinclusion of a qualified business interest.
b) The principal payments on the deferred tax may begin up to 5years after the normal due date, with interest only payable duringthis initial period.
c) To qualify for such a deferral, the estate must hold aclosely held business interest valued at greater than 65 percent ofthe adjusted gross estate.
d) The deferred tax is accelerated if the heirs dispose of thebusiness interest.
4. All the following statements concerning property heldby a married couple as tenants by the entirety are correctEXCEPT
a) The entire property must be included in the estate of thefirst to die.
b) The property passes automatically to the survivor at the timeof the first death.
c) Each holds an undivided interest in the whole property.
d) Neither spouse can unilaterally transfer his or herinterest.
| 1. All the following forms of property interests givethe holder current possessory enjoyment rights EXCEPT a) leasehold b) vested remainder c) life estate d) fee simple absolute |
| 2. All the following statements concerning the estatetaxation of life insurance proceeds are correct EXCEPT a) The proceeds are included in an insuredâs gross estate if thepolicy is payable to his or her gross estate. b) Group life insurance proceeds are treated in the same manneras individually owned insurance. c) The proceeds are included in the insuredâs gross estate ifpayable to an inter vivos trust that is required to pay theexpenses of the insuredâs estate. d) The proceeds must be excluded from the policy owner-insuredâsgross estate if payable to the surviving spouse because of themarital deduction. |
| 3. All the following statements concerning the deferralof payment of estate tax under Sec. 6166 for estates that holdclosely held business interests are correct EXCEPT a) The tax deferral is limited to the estate tax created by theinclusion of a qualified business interest. b) The principal payments on the deferred tax may begin up to 5years after the normal due date, with interest only payable duringthis initial period. c) To qualify for such a deferral, the estate must hold aclosely held business interest valued at greater than 65 percent ofthe adjusted gross estate. d) The deferred tax is accelerated if the heirs dispose of thebusiness interest. |
| 4. All the following statements concerning property heldby a married couple as tenants by the entirety are correctEXCEPT a) The entire property must be included in the estate of thefirst to die. b) The property passes automatically to the survivor at the timeof the first death. c) Each holds an undivided interest in the whole property. d) Neither spouse can unilaterally transfer his or herinterest. |
