FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: The Federal Gift and Estate Taxes

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Essay

Review LaterAdd Note

Review Later

In 1992,Noah and Olivia acquire realty for $2 million,with Noah furnishing $500,000 of the purchase price and Olivia providing the balance.Title to the property is listed as: "Noah and Olivia,joint tenants with right of survivorship." In 2012,Olivia dies first when the realty is worth $3 million.How much is included in her gross estate under the following circumstances?

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

A timely issued disclaimer by an heir transfers the property to someone else without a Federal gift tax result.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

Prior to his death in 2012,Alma made the following gifts. As a result of the 2010 transfer,Alma paid a gift tax of $70,000.As to these transactions,Alma's gross estate includes:

Paul,a U.S.citizen,will avoid the Federal estate tax if he becomes a Canadian resident and owns no property located in the U.S.at the time of his death.

Manfredo makes a donation of $50,000 to the church where he was baptized in Mexico City.The gift does not qualify as a charitable contribution for Federal income tax purposes.

In most cases,the gross estate of a decedent is larger than the probate estate.

At the time of her death,Abigail held a general power of appointment over a trust created by her grandmother in 1990.Since Abigail never exercised the general power,none of the trust is included in her gross estate.

The purpose of the marital deduction is to place married decedents in common law states on par with those in community property jurisdictions.

Homer and Laura are husband and wife.At the time of Homer's prior death in 2012,they owned the following: land as tenants by the entirety worth $2,000,000 (purchased by Homer) and stock as equal tenants in common worth $3,000,000 (purchased by Laura) .Laura also owns an insurance policy on Homer's life (maturity value of $1,000,000) with herself as the designated beneficiary.Homer's will passes all his property to Laura.How much marital deduction is allowed Homer's estate?

When one spouse predeceases the other,the credit for prior transfers does not apply.

Two brothers,Sam and Bob,acquire real estate as equal tenants in common.Of the purchase price of $200,000,Sam furnished $80,000 while Bob provided the balance.If Sam dies first ten years later when the real estate is worth $600,000,his estate includes $240,000 as to the property.

Reba purchases U.S.savings bonds which she lists in the name of Rod,Reba's son.The purchase of the bonds does not constitute a gift.

At the time of his death,Jason was a participant in Silver Corporation's qualified pension plan and group term life insurance.The balance of the survivorship feature in his pension plan is: The term insurance has a maturity value of $100,000.All amounts are paid to Pam,Jason's daughter.One result of these transactions is:

Sam purchases a U.S.savings bond which he registers as follows: "Sam,payable to Don upon Sam's death." A gift occurs when Sam purchases the bond.

For Federal estate tax purposes,the gross estate does not include property that will pass to a qualifying charity.

A transfer in trust in which the trustee has the power to accumulate income is not a gift of a future interest if the trustee never exercises the power.

At the time of her death on October 4,2012,Kaitlyn was involved in the following transactions. As to these transactions,Kaitlyn's gross estate includes:

Tom and Jean are husband and wife and live in California.In 1991,they use $400,000 of community funds to purchase an annuity from an insurance company.Under the terms of the contract,Tom is to receive $40,000 per year for life once he reaches age 65.If Jean outlives Tom,she is to receive $30,000 per year for life.Tom dies first in 2012 (and before reaching age 65) .At this time,the value of Jean's interest is $500,000.As to this contract,Tom's gross estate includes:

Don and Roxana are husband and wife and live in a common law state.Pursuant to the estate tax rules applicable to annuities (§ 2039) ,which of the following is not a correct statement?

Distributions from retirement plans and proceeds from life insurance plans usually are not subject to probate.