Question 1

At his death Tyrone's life insurance policy paid his estate $85,000. What amount, if any, is included in Tyrone's gross estate?

Accepted Answer

A)   $85,000.
B)   $85,000 if Tyrone had an incident of ownership of the policy at the time of his death.
C)   zero if Tyrone did not transfer any ownership of the policy within three years of his date of death.
D)   zero-life insurance proceeds due to the death of the decedent are not included in the gross estate.
E)   zero if Tyrone's estate uses the insurance proceeds to pay Tyrone's estate tax.F) B) and C)
G) A) and E)

Question 2

A couple who is married at the time of completing a gift can elect to file a joint gift tax return.

Accepted Answer

A) True 
 B)False

Question 3

This year Samantha gave each of her three nephews birthday gifts of $10,150 in cash. At Christmas, Samantha gave each of her three nephews Christmas gifts of an additional $6,060 in cash. What is the amount of the taxable gifts, if any, made by Samantha this year?

Accepted Answer

A)   $3,630.
B)   $32,850.
C)   $48,630.
D)   zero-none of the gifts exceed the annual exclusion.
E)   None of the choices are correct.F) B) and D)
G) None of the above

Question 4

Proceeds of life insurance paid due to the death of the decedent are included in the decedent's gross estate if the decedent had the right to designate the beneficiary of the policy.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a true statement?

Accepted Answer

A)   A fiduciary entity is a legal entity that takes possession of property for the benefit of a person.
B)   An estate is a fiduciaryentity that comes into existence upon a person's death to transfer the decedent's real and personal property.
C)   A trust is also a fiduciaryentity whose purpose is to hold and administer the corpus for other persons (beneficiaries) .
D)   An estate exists only temporarily, but a trust may have a prolonged or even indefinite existence.
E)   All of the choices are true.F) A) and E)
G) A) and D)

Question 6

Chloe's gross estate consists of the following property valued at the date of death:  Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a true statement?

Accepted Answer

A)   Chloe's adjusted gross estate is at least $12,020,000.
B)   Chloe's taxable estate is at least $12,020,000.
C)   Chloe's taxable estate is $12,050,000.
D)   Chloe's estate will calculate the tentative estate tax on $12.5 million.
E)   None of the choices are true.F) A) and E)
G) B) and D)

Question 7

When a gift-splitting election is made, gifts made by either spouse during the year will be treated as if each spouse made one-half of the transfer.

Accepted Answer

A) True 
 B)False

Question 8

At her death Emily owned real estate worth $2.5 million and other property worth $10 million. Property taxes of $200,000 were accrued on the real estate at the time of Emily's death. Which of the following is a true statement with respect to these items without considering any other owned property?

Accepted Answer

A)   Emily's gross estate is $12.3 million.
B)   Emily's taxable estate is $12.5 million.
C)   Emily's adjusted gross estate is $12.3 million.
D)   Emily's estate tax base is $12.5 million.
E)   None of the choices are true.F) A) and B)
G) A) and C)

Question 9

Which of the following transactions would not utilize the "Section 7520 rate" to calculate the value of the transfer?

Accepted Answer

A)   A transfer of property with a retained life estate.
B)   A transfer of property to a spouse.
C)   A transfer of a remainder interest in real property.
D)   A transfer of a 10-year term certain in real property.
E)   None of these choices utilizes the "Section 7520 rate" in the calculation of the value of the property.F) None of the above
G) A) and D)

Question 10

The theft of property included in the gross estate is only deductible in calculating the taxable estate if the loss exceeds 10 percent of the decedent's adjusted gross estate.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a true statement?

Accepted Answer

A)   A serial gift strategy utilizes inter vivos gifts to multiple donees over multiple years to maximize the annual exclusion.
B)   A serial gift strategy works well even if the gifts don't qualify as present interests.
C)   A bypass trust avoids all estate taxes on the estate of the first spouse to die.
D)   The income tax savings from holding appreciated property until death are always outweighed by the additional estate tax imposed on the property.
E)   None of the choices are true.F) None of the above
G) A) and D)

Question 12

The estate tax is imposed on testamentary transfers.

Accepted Answer

A) True 
 B)False

Question 13

The gift-splitting election only applies to gifts made by taxpayers who reside in community-property states.

Accepted Answer

A) True 
 B)False

Question 14

Jayden gave Olivia a ring when she agreed to marry him. The ring is a family heirloom valued at $68,000. What is the amount of the taxable gift?

Accepted Answer

A)   $0-the marital deduction offsets the gift as long as Jayden and Olivia are married by year-end.
B)   $53,000.
C)   $68,000.
D)   $0-this transfer is not gratuitous.
E)   None of the choices are correct.F) A) and E)
G) A) and C)

Exam 14: Transfer Taxes and Wealth Planning

A couple who is married at the time of completing a gift can elect to file a joint gift tax return.

Correct Answer
verified

Proceeds of life insurance paid due to the death of the decedent are included in the decedent's gross estate if the decedent had the right to designate the beneficiary of the policy.

Correct Answer
verified

Jayden gave Olivia a ring when she agreed to marry him. The ring is a family heirloom valued at $68,000. What is the amount of the taxable gift?

Correct Answer
verified

Chloe's gross estate consists of the following property valued at the date of death: Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a true statement?

Correct Answer
verified

The gift-splitting election only applies to gifts made by taxpayers who reside in community-property states.

Correct Answer
verified

At her death Emily owned real estate worth $2.5 million and other property worth $10 million. Property taxes of $200,000 were accrued on the real estate at the time of Emily's death. Which of the following is a true statement with respect to these items without considering any other owned property?

Correct Answer
verified

This year Samantha gave each of her three nephews birthday gifts of $10,150 in cash. At Christmas, Samantha gave each of her three nephews Christmas gifts of an additional $6,060 in cash. What is the amount of the taxable gifts, if any, made by Samantha this year?

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
verified

The estate tax is imposed on testamentary transfers.

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
verified

Which of the following transactions would not utilize the "Section 7520 rate" to calculate the value of the transfer?

Correct Answer
verified

When a gift-splitting election is made, gifts made by either spouse during the year will be treated as if each spouse made one-half of the transfer.

Correct Answer
verified

At his death Tyrone's life insurance policy paid his estate $85,000. What amount, if any, is included in Tyrone's gross estate?

Correct Answer
verified

The theft of property included in the gross estate is only deductible in calculating the taxable estate if the loss exceeds 10 percent of the decedent's adjusted gross estate.

Correct Answer
verified

Exam 14: Transfer Taxes and Wealth Planning

A couple who is married at the time of completing a gift can elect to file a joint gift tax return.

Correct AnswerverifiedShow Answer

Proceeds of life insurance paid due to the death of the decedent are included in the decedent's gross estate if the decedent had the right to designate the beneficiary of the policy.

Correct AnswerverifiedShow Answer

Jayden gave Olivia a ring when she agreed to marry him. The ring is a family heirloom valued at $68,000. What is the amount of the taxable gift?

Correct AnswerverifiedShow Answer

Chloe's gross estate consists of the following property valued at the date of death: Chloe's real estate is encumbered by a mortgage of $450,000, and Chloe's executor paid her funeral costs of $6,000 and charged fees for $24,000. Which of the following is a true statement?

Correct AnswerverifiedShow Answer

The gift-splitting election only applies to gifts made by taxpayers who reside in community-property states.

Correct AnswerverifiedShow Answer

At her death Emily owned real estate worth $2.5 million and other property worth $10 million. Property taxes of $200,000 were accrued on the real estate at the time of Emily's death. Which of the following is a true statement with respect to these items without considering any other owned property?

Correct AnswerverifiedShow Answer

This year Samantha gave each of her three nephews birthday gifts of $10,150 in cash. At Christmas, Samantha gave each of her three nephews Christmas gifts of an additional $6,060 in cash. What is the amount of the taxable gifts, if any, made by Samantha this year?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

The estate tax is imposed on testamentary transfers.

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Which of the following transactions would not utilize the "Section 7520 rate" to calculate the value of the transfer?

Correct AnswerverifiedShow Answer

When a gift-splitting election is made, gifts made by either spouse during the year will be treated as if each spouse made one-half of the transfer.

Correct AnswerverifiedShow Answer

At his death Tyrone's life insurance policy paid his estate $85,000. What amount, if any, is included in Tyrone's gross estate?

Correct AnswerverifiedShow Answer

The theft of property included in the gross estate is only deductible in calculating the taxable estate if the loss exceeds 10 percent of the decedent's adjusted gross estate.

Correct AnswerverifiedShow Answer

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