A married man died this year leaving a gross estate of $3,200,000. Additional facts concerning his estate are:
-Administration expenses and debts $ 250,000
-Marital deduction 1,200,000
-
Applicable credit amount (2005) 555,800
-
Applicable exclusion amount (2005) 1,500,000
-
State death taxes payable 20,400
A.
0
B.
$123,720
C.
$103,320
D.
$128,280
Which of the following statements concerning the generation-skipping transfer tax (GSTT) is correct?
A. The GSTT rate applicable to a transfer depends upon the amount of the gift.
B. The lifetime exemption shelters a maximum of $1 million of transfers to grandchildren from GSTT for the current year.
C. Tuition payments made by a grandparent directly to a university for a grandchild's education are exempt from GSTT.
D. The annual exclusion against GSTT shelters gifts by a grandparent to a trust benefitting multiple grandchildren.
Which of the following types of real property ownership will be deemed to be a tenancy in common?
A. Two brothers are equal partners in a general partnership that owns a piece of real property used in the partnership business.
B. Two brothers own equal fractional interests in a piece of real property and at the death of one of the brothers the survivor will own the entire piece of property.
C. Two brothers own equal undivided interests in a piece of real property, with each brother being able to divest himself of his interest by sale, gift, or will.
D. Two brothers own equal amounts of all the common stock in a corporation, the only asset of which is real property.
A father is considering giving his daughter a gift. For tax planning purposes, the father should give his daughter which of the following?
A. Raw land that cost him $10,000, its present fair market value, but which has a substantial potential for appreciation
B. A bond that cost him $15,000 and is now worth $10,000
C. Real estate that cost him $40,000 and is now worth $120,000, subject to a $110,000 mortgage
D. Stock that cost him $10,000 and which now has a fair market value of $20,000
When the owner of a closely held business dies, the payment of a portion of the federal estate tax may be deferred for a period of several years if the estate otherwise qualifies under the provisions of IRC Section 6166. Which of the following statements concerning this deferral of federal estate tax is correct?
A. The interest rate on the deferred tax is determined by the prime rate in effect on the date of death.
B. The interest on the unpaid estate tax is payable over the first 10 years, after which the tax plus interest on the balance is payable in equal installments for the last 5 years.
C. To qualify for the tax deferral, the closely held business must represent more than 50 percent of the value of the decedent's adjusted gross estate.
D. Under certain circumstances, the estate will forfeit its right to tax deferral, and all the remaining unpaid estate tax will become due and payable immediately.
All the following statements concerning a typical pour-over trust are correct EXCEPT:
A. It is a device to consolidate all a decedent's assets to simplify administration.
B. Properly drawn, it eliminates the need to file a federal estate tax return.
C. The trust is created during the lifetime of the grantor.
D. The trust is revocable during the lifetime of the grantor.
The decedent, Z, died this year. The facts concerning Z estate are:
-Gross estate $3,200,000
-Marital deduction $1,100,000
-Charitable deduction 80,000
-Gifts made after 1976 115,000
-
State death taxes payable 215,000
A.
$1,805,000
B.
$1,920,000
C.
$1,590,000
D.
$1,690,000
All the following are conditions that must be met if an otherwise nonqualified terminable interest is to qualify (as QTIP) for the federal estate tax marital deduction EXCEPT:
A. No person can be given the right to direct that the property go to anyone other than the surviving spouse as long as the surviving spouse is alive.
B. The deceased spouse's executor must make an irrevocable election to have the property includible in the surviving spouse's gross estate.
C. The surviving spouse must be given a lifetime right to receive all the property's income at least annually.
D. The surviving spouse must make a qualified disclaimer to all other property in the deceased spouse's estate within 9 months of death.
A woman is the income beneficiary of an irrevocable trust. All the following powers held by her will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes EXCEPT
A. the power to direct the trustee to distribute trust corpus to her
B. the testamentary special or limited power to direct the trustee to distribute trust assets to her children
C. the testamentary power to direct the trustee to pay trust assets to her estate
D. the testamentary power to direct the trustee to use trust assets to pay her estate taxes
Believing that his death was imminent, a widower gave his son some real estate two years ago, and filed a timely gift tax return. The widower died on January 1st of this year. Additional facts are:
-Widower's basis in the real estate $150,000
-
Value of real estate when gifted 400,000
-
Value of real estate on date of death 800,000
-
Amount of gift tax paid by widower 121,800
A.
The gift tax paid is brought back into the widower's gross estate at $121,800.
B.
The gift of the real estate is included in the calculation of the widower's federal estate tax as an adjusted taxable gift.
C.
The son's income tax basis in the real estate is $800,000.
D.
The widower recognized no gain for income tax purposes at the time the gift was made.
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.