Question 1

At her death Tricia owned a life insurance policy on her life that paid her daughter $500,000 upon her death. The policy was only valued at $25,000 prior to Tricia's death. What amount, if any, is included in Tricia's gross estate?

Accepted Answer

A)   $500,000
B)   $25,000
C)   $25,000 if Tricia transferred ownership of the policy within three years of her date of death.
D)   zero - life insurance proceeds due to the death of the decedent are not included in the decedent's gross estate.
E)   zero if Tricia's daughter refused to accept the proceeds.F) All of the above
G) C) and D)

Question 2

An exemption equivalent is the amount of annual gifts that is automatically exempt from the gift tax.

Accepted Answer

A) True 
 B)False

Question 3

Adjusted taxable gifts are included when calculating the taxable estate but are not subject to double taxation because a tax credit is provided for taxes payable on adjusted taxable gifts.

Accepted Answer

A) True 
 B)False

Exam 25: Transfer Taxes and Wealth Planning of the Cfa Institute

Adjusted taxable gifts are included when calculating the taxable estate but are not subject to double taxation because a tax credit is provided for taxes payable on adjusted taxable gifts.

Correct Answer
verified

At her death Tricia owned a life insurance policy on her life that paid her daughter $500,000 upon her death. The policy was only valued at $25,000 prior to Tricia's death. What amount, if any, is included in Tricia's gross estate?

Correct Answer
verified

An exemption equivalent is the amount of annual gifts that is automatically exempt from the gift tax.

Correct Answer
verified

Exam 25: Transfer Taxes and Wealth Planning of the Cfa Institute

Adjusted taxable gifts are included when calculating the taxable estate but are not subject to double taxation because a tax credit is provided for taxes payable on adjusted taxable gifts.

Correct AnswerverifiedShow Answer

At her death Tricia owned a life insurance policy on her life that paid her daughter $500,000 upon her death. The policy was only valued at $25,000 prior to Tricia's death. What amount, if any, is included in Tricia's gross estate?

Correct AnswerverifiedShow Answer

An exemption equivalent is the amount of annual gifts that is automatically exempt from the gift tax.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified