HS-330

It a grantor establishes an irrevocable trust; the income of the trust will be taxed to the grantor if it is used to pay premiums for life insurance on the life ofA . a child of the grantorB . the spouse of the grantorC . a grandchild of the grantorD...

To determine whether a taxable gift has been made, the IRS focuses on all the following factors EXCEPT:A . Was the transferred property real property or personal property?B . Was the value of the gift property in excess of the annual per-donee exclusion?C . Did the donor absolutely, irrevocably, and...

Which of the following statements concerning wills is (are) correct? l. A will should be reviewed periodically to assure that the property owner’s most recent intentions are honored at death. ll. Once signed, a will’s provisions may not be changed without the consent of all the beneficiaries under the will.A...

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’sA . l onlyB . II onlyC . Both l and...

A wife makes outright gifts of $40,000 to her son this year, and her husband agrees to split the gifts with her. Which of the following correctly states the amount of the taxable gifts?A . Wife 0, husband $18,000B . Wife $9,000, husband $9,000C . Wife$19,000, husband$19,000D . Wife $18,000,...

Which of the following statements concerning state death taxes is correct?A . A deduction for the full amount of state death taxes paid by a decedent estate is allowed on a decedent federal estate tax return.B . A state estate tax is imposed on the right of heirs to receive...

The decedent, D, died this year. The facts concerning D estate are: Gross estate $3,400,000 Marital deduction 0 Charitable deduction 600,000 Funeral & administration expenses 00,000 Gifts made after 1976 170,000 State death taxes payable 192,000 What is D taxable estate?A . $2,138,000B . $2,358,000C . $2,528,000D . $2,720,000View AnswerAnswer:...

All the following transfers are subject to the generation-skipping transfer tax (GSTT) EXCEPT:A . A direct cash gift of $50,000 from a grandparent to his grandchild if such grandchild’s parents are still alive.B . A direct cash payment of $28,000 from a grandparent to a private prep school to cover...

A father wants to accumulate funds for his 12-year-old son’s college education. On the advice of his attorney, the father establishes an IRC Section 2503(c) trust and funds it with annual gifts. All the following statements concerning this arrangement are correct EXCEPT:A . The trust must be irrevocable.B . The...

Which of the following statements concerning ante nuptial agreements is (are) correct? l. They are frequently used to protect the interests of children of former marriages. II. They can legally deprive a surviving spouse of his or her elective share of a deceased spouse’s estate.A . l onlyB . II...