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
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Terminal reserve on July 1, 2003 20,000
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Terminal reserve on July 1, 2004 24,000
A. $200,000All of the following statements concerning the use of an irrevocable life insurance trust to solve liquidity problems of the insured's estate are correct EXCEPT:
A. The grantor should avoid obtaining incidents of ownership in the policy.A person dying without a will loses all the following rights EXCEPT the right to
A. take maximum advantage of the marital deductionA single man with substantial assets and income is supporting his 80-year-old partially senile mother with monthly cash gifts. He is trying to find a practical way to support his mother while at the same time saving federal gift and income taxes without giving up ultimate control of any assets. Which of the following courses of action will best accomplish these objectives?
A. Purchase corporate bonds that pay interest in an amount sufficient for her to support herself and assign the interest payments to herAll 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.Which of the following statements concerning antenuptial agreements is (are) correct?
1.
They are frequently used to protect the interests of children of former marriages.
2.
They can legally deprive a surviving spouse of his or her elective share of a deceased spouse's estate.
A. Both 1 and 2Which of the following statements concerning marital transfers to a non-U.S. citizen spouse is (are) correct?
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A marital deduction is automatically available as long as property is transferred outright to the non-citizen spouse.
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A marital deduction is automatically available if the transferor-decedent spouse is a U. S. citizen.
A. 2 onlyWhich 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 onlyWhen 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.All the following powers held by the grantor of an irrevocable trust will cause the trust assets to be brought back into the estate of the grantor EXCEPT the power to
A. terminate the trustNowadays, 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.