A man died in February of this year. Last year, when he learned that he had terminal illness, he immediately made the following gifts and filed the required gift tax return:
Fair Market Value
Gift of listed stock to
-a qualified charity $200,000
-
Gift of listed bonds to his wife 300,000
-
Gift of a boat to his son 10,000
-
Gift of a sports car to his daughter 10,000
A.
$520,000
B.
$290,000
C.
$200,000
D.
0
Mr. Conrad died early this year. Under the terms of his will, he left all his real estate and tangible personal property to his son. All the remainder of his probate estate was left to his wife, Mrs. Conrad. The following is a list of Mr. Conrad's probate assets and their fair market values at the time of his death:
-Commercial real estate $150,000
-Furniture and fixtures 50,000
-Listed common stock 100,000
-
Other securities 200,000
A.
$800,000
B.
$600,000
C.
$300,000
D.
$400,000
A man recently died with only probate assets. Under the terms of his will, he left his entire probate estate outright to his wife. The following are relevant facts about the estate:
-Gross estate $2,000,000
-Estate administration expenses 50,000
-Debts of decedent 200,000
-
Allowable funeral expenses 5,000
A.
$1,745,000
B.
$1,750,000
C.
$1,795,000
D.
$1,800,000
On January 1, 2004 a father gave his daughter a $200,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are:
-Date of issue: July 1, 1992
-Premium paid on July 1, 2003 $3,200
-
Terminal reserve on July 1, 2003 20,000
-
Terminal reserve on July 1, 2004 24,000
A.
$200,000
B.
$ 23,200
C.
$ 23,600
D.
$ 21,600
Which of the following statements concerning the estate tax marital deduction is correct?
A. The marital deduction available to a decedent in a community-property state is equal to the total amount of community property.
B. The marital deduction available to a decedent in a common-law state is equal to the net amount of qualifying property passing to the surviving spouse.
C. The marital deduction available to a decedent in a common-law state is limited to a maximum of $1 million.
D. The marital deduction available to a decedent in a common-law state is equal to one half the adjusted gross estate.
Which of the following statements concerning filing the federal estate tax return is correct?
A. For persons dying under current law, an estate tax return must be filed for all U.S. citizen decedents.
B. A one-year extension for filing the estate tax return is granted when the estate contains a closely held business interest.
C. An automatic two-year extension for filing the estate tax return is granted when the decedent dies overseas.
D. The estate tax return must be filed within 9 months of death unless an extension is granted by the IRS.
A number of states have passed statutes governing "living wills." Which of the following statements concerning a living will is (are) correct?
1.
A living will is an alternative to an inter vivos trust under certain circumstances.
2.
A living will is an oral will made by the testator during a final illness when it is impossible to write one.
A. Both 1 and 2
B. 1 only
C. Neither 1 nor 2
D. 2 only
Which of the following members of the estate planning team is responsible for assuring that the client's intentions are expressed in documents that will carry out the final plan?
A. The lawyer
B. The investment counselor
C. The trust officer
D. The life underwriter
A mother died leaving her property equally to her wealthy daughter and her poor son. The daughter wishes to disclaim her share of the inheritance so that it will pass to her brother without her incurring any gift tax liability. Assume that the disclaimer is written, is timely, and is irrevocable. Which of the following statements concerning an additional requirement of a qualified disclaimer is (are) correct?
1.
The daughter refusal must direct specifically that her brother is to receive her inheritance.
2.
The daughter must not have received any part of her inheritance or any income from it prior to her refusal to accept it.
A. 1 only
B. Neither 1 nor 2
C. Both 1 and 2
D. 2 only
All the following statements concerning the generation-skipping transfer tax (GSTT) are correct EXCEPT:
A. All donors have a cumulative $1.5 million exemption against generation-skipping transfers.
B. The tax is imposed according to a graduated rate schedule similar to the federal estate and gift tax rates.
C. The tax may be imposed on direct gifts to grandchildren.
D. The tax may be imposed on gifts in trust to grandchildren.
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