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 41

Multiple Choice

Review LaterAdd Note

Review Later

Concerning the Federal tax on generation-skipping transfers:

A) The charitable deduction is allowed to reduce the tax.
B) The marital deduction is allowed to reduce the tax.
C) A credit is allowed for any state-level GST tax paid.
D) All of these statements are true.

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 42

Essay

Review LaterAdd Note

Review Later

What is the justification for the terminable interest rule that is applicable to the marital deduction? Give an example.

Correct Answer

verified

The marital deduction is based on the pr...

View Answer

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Inheritance tax

At the time of her death on June 6, Mary owned the following assets. ∙ Taupe Corporation stock cost $400,000, FMV $800,000). On May 4, Taupe declared a cash dividend, payable on June 15, to shareholders as of the record date of June 4. Mary's executor received the $40,000 dividend on the scheduled payment date. ∙ City of Boise bonds cost $800,000, FMV $780,000). Interest accrued to June 6 was $42,000. The executor eventually collected $50,000 included postdeath accrual of $8,000) on July 20. As to these transactions, how much is included in Mary's gross estate?

Classify each of the following independent statements:. -Decedent owned a policy on the life of his spouse with himself as the designated beneficiary. The spouse survives.

At the time of Dylan's death, he was a resident of the United States. He owns land located in a foreign country, which is subject to that country's estate tax. This same land also can be subject to the Federal estate tax.

Murray owns an insurance policy on the life of his father, Logan. Upon Logan's death, the policy proceeds of $2,000,000 are paid to the designated beneficiary, Grace. What are the transfer tax consequences resulting from Logan's death based on the following independent assumptions? a. Grace is Murray's daughter. b. Grace is Murray's wife. c. What are the tax consequences if Murray dies before both Grace and Logan)?

Classify each of the following statements. -Clarence pays the medical providers eg., physicians, hospital) for his aunt's knee replacement operation. The aunt does not qualify as Clarence's dependent.

Classify each statement appropriately. -Selling expenses incurred to sell estate assets in order to pay administration expenses.

In which of the following independent situations has Jean made a gift?

The Federal transfer tax system includes three separate taxes.

Classify each of the following independent statements:. -Cash dividends on stock owned by the decedent declaration and record dates preceded death but payment date was after death) .

At the time of his death, Tom owned some common stock. $\begin{array} { l l } &\begin{array} { l } \text { Date of Death } \\\text { Value }\end{array} & \begin{array} { l } \text { Value Six } \\\text { Months Later }\end{array} \\\text { Citron Corporation }&\$ 1,500,000 & \$ 1,100,000 \\\text { Grey Corporation }&1,300,000 & 1,400,000\end{array}$ If the alternate valuation date is properly elected, the value of Tom's estate as to these stocks is:

Concerning the Federal tax on generation-skipping transfers:

Classify each of the following statements: -Under her father's will, Faith is to receive 10,000 shares of GE common stock. Eight months after her father's death, Faith disclaims the 10,000 shares.

Classify each statement appropriately. -Casualty loss to property after the death of the owner.

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 that: $\begin{array}{ll}\text { Contributions by Silver } & \$ 800,000 \\\text { After-tax contributions by Jason } & 400,000 \\\text { Plan earnings } & 300,000\end{array}$ 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:

The Federal transfer taxes generally apply a flat rate of:

On the date of her death, Ava owned the following. ∙ An insurance policy face amount of $500,000) on the life of Benjamin Ava's current husband) with herself as the designated beneficiary. The policy has a cash surrender value of $50,000. ∙ A life estate in a trust created by Alexander Ava's deceased prior husband). The trust current value of $2,900,000) was worth $1,000,000 when created 10 years ago. A QTIP election was made by the executor of Alexander's estate. ∙ Federal income tax refund of $80,000 on a prior year's tax return and paid to the executor of Ava's estate. As to these items, how much is included in Ava's gross estate?

Classify each of the following statements. -Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Nadine predeceases Horace.