Which of the following is an example of a taxable gift for federal gift tax purposes?
A. The parents of a married son permit their son and his family to use a summer cottage that rents for $3,000 per month on a rent-free basis.
B. A father gives his 19-year-old daughter a note promising to give her his Rolls Royce when she reaches the age of 21.
C. Instead of parents paying an outside executive $60,000, a son runs their business for 8 months without charging a fee.
D. A father cancels a $50,000 note his daughter gave him when he made a loan to her 2 years ago.
An individual who is a resident of State W is also the sole proprietor of a business located in State
A. He owns real property located in State X that is used by the proprietorship. While on vacation in State Y, the individual meets an untimely death. Under the terms of his will, his entire estate is bequeathed to a resident of State Z. Which state will tax the real property used by the proprietorship?
B. State W
C. State Z
D. State X
E. State Y
Many trust instruments provide for the removal of the original trustee. Valid reasons for removing the original trustee include which of the following?
1.
A shift in trust situs is desirable because of changes in law.
2.
The beneficiary has moved his or her residence to a distant state.
A. 1 only
B. Both 1 and 2
C. Neither 1 nor 2
D. 2 only
A widow made the following cash gifts during the current year:
-Donee Amount of Gift
-
A qualified charity $40,000
-
A close friend 30,000
-
Her sister 5,000
-
Her daughter 15,000
-
Her brother 10,000
A.
$23,000
B.
$45,000
C.
$52,000
D.
$95,000
All the following transfers are subject to the generation-skipping transfer tax (GSTT) EXCEPT:
A. A direct cash gift of $50,000 from a grandparent to his grandchild if such grandchild's parents are still alive.
B. A distribution to a grandchild from a sprinkle trust created by a grandparent to benefit both skip and non-skip beneficiaries.
C. A termination of a trust at the death of the nonskip life income beneficiary with the remainder distributed solely to skip persons.
D. A direct cash payment of $28,000 from a grandparent to a private prep school to cover the tuition costs for her grandchild.
A man is planning to establish and fund an irrevocable trust for the benefit of his two sons, ages 19 and 22, and plans to give the trustee power to sprinkle trust income. From the standpoint of providing federal income, gift, and estate tax savings, which of the following would be a suitable trustee?
1.
The grantor of the trust
2.
The grantor's 22-year-old son
A. 2 only
B. Neither 1 nor 2
C. 1 only
D. Both 1 and 2
Alan, a widower, is a retired executive with substantial assets. He wishes to provide for the financial security of his two grandchildren since their father, Alan's son, has always managed money poorly. This year Alan would like each grandchild to receive a substantial gift. Which of the following statements concerning the generation-skipping transfer tax (GSTT) on these gifts is (are) correct?
1.
Federal estate or gift tax will not be imposed if the gift is otherwise subject to the GSTT.
2.
Assuming no prior gifts, Alan can gift a cumulative total of (not including the annual exclusion) $1.5 million to his grandchildren without the imposition of the GSTT.
A. Both 1 and 2
B. 1 only
C. Neither 1 nor 2
D. 2 only
Which of the following statements concerning the imposition of state death taxes on property owned by a decedent is (are) correct?
1.
Real estate must be taxed in the state where the decedent was domiciled.
2.
Intangible personal property is generally taxed in the state where the decedent was domiciled.
A. 2 only
B. Neither 1 nor 2
C. Both 1 and 2
D. 1 only
Which of the following is an example of a taxable gift for federal gift tax purposes?
A. Instead of parents paying an outside executive $60,000, a son runs their business for 8 months without charging a fee.
B. The parents of a married son permit their son and his family to use a summer cottage that rents for $3,000 per month on a rent-free basis.
C. A father cancels a $50,000 note his daughter gave him when he made a loan to her 2 years ago.
D. A father gives his 19-year-old daughter a note promising to give her his Rolls Royce when she reaches the age of 21.
Which of the following statements concerning marital transfers to a non-U.S. citizen spouse is (are) correct?
1.
A marital deduction is automatically available as long as property is transferred outright to the non-citizen spouse.
2.
A marital deduction is automatically available if the transferor-decedent spouse is a U. S. citizen.
A. 1 only
B. Neither 1 nor 2
C. 2 only
D. Both 1 and 2
Nowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only American College exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your HS-330 exam preparations and American College certification application, do not hesitate to visit our Vcedump.com to find your solutions here.