Which of the following statements concerning the generation-skipping transfer tax (GSTT) is (are) correct?

I. An annual exclusion against GSTT will shelter gifts by a grandparent to a trust benefiting multiple grandchildren.

II. Tuition payments made directly by a grandparent to a university for a grandchild’s education are exempt from GSTT.

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In which of the following situations will the grantor be taxed on income from trust property.

l. The grantor of a trust gives one of the trust beneficiaries the right to add or delete beneficiaries.

ll. An adverse party to the grantor holds the power to determine the timing to trust distributions to the beneficiaries.

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Which of the following statements concerning a grantor-retained annuity trust (GRAT) is (are) correct?

l. The grantor is taxed on trust income during the retained term.

II. The grantor makes an irrevocable transfer to the remainder person(s) when the trust is created.

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Alan, a widower, is a retired executive with substantial assets. He wishes to provide for the financial security of his two grandchildren since their father, Alan’s son, has always managed money poorly. This year Alan would like each grandchild to receive a substantial gift.

Which of the following statements concerning the generation-skipping transfer tax (GSTT) on these gifts is (are) correct?

I. Federal estate or gift tax will not be imposed if the gift is otherwise subject to the GSTT.

II. Assuming no prior gifts, Alan can gift a cumulative total of (not including the annual exclusion) $1.5 million to his grandchildren without the imposition of the GSTT.

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Which of the following statements concerning filing the federal estate tax return is (are) correct?

l. The estate tax return must be filed within 9 months of death unless an extension is granted by the IRS.

ll. For persons dying this year. an estate tax return must be filed for gross estates plus adjusted taxable gifts that exceed $1.5 million.

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Which of the following statements concerning the gift or estate tax charitable deduction is (are) correct?

l. A donor is denied a charitable deduction for property that passes to a qualified charity as the result of a qualified disclaimer if the donor original transfer was to a no charitable donee.

ll. A decedent-spouse estate may obtain both marital and charitable deductions for interests contributed to a charitable remainder trust when the surviving spouse is the only no charitable income beneficiary for life.

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Which of the following statements concerning pooled-income funds are correct?

l. The fund contains commingled donations from many sources.

ll. A decedent donation purchases units in the fund which generate income that is paid at least annually to a charity.

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Which of the following factors is (are) used to make a choice between having an entity-purchase or cross-purchase partnership buy-sell agreement?

I. The cost basis of the partner’s business interests.

ll. The amount of the partner’s individual personal net worth’s

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Which of the following transfers will be successful in removing property from a grantor’s gross estate?

l. A grantor’s transfer of property to a revocable trust if the grantor lives three years after the transfer.

ll. A grantor’s transfer of a personal residence to a qualified personal residence trust if the grantor survives the retained interest term.

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Which of the following statements concerning marital transfers to a non-U.S. citizen spouse is (are) correct?

l. A marital deduction is automatically available as long as property is transferred outright to the non-citizen spouse.

Il. A marital deduction is automatically available if the transferor-decedent spouse is a U. S. citizen.

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