A woman is the income beneficiary of an irrevocable trust. All the following powers held by her will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes EXCEPT:
Answer : C
All the following statements concerning qualification of property for the federal estate tax marital deduction are correct EXCEPT:
Answer : C
All the following statements concerning ownership of property in the form of a joint tenancy with right of survivorship are correct EXCEPT:
Answer : D
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?
1. Federal estate or gift tax will not be imposed if the gift is otherwise subject to the GSTT.
2. 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.
Answer : B
Which of the following statements concerning federal gift, estate, and income taxes is (are) correct?
l. A taxable gift of income-producing property to a donee automatically transfers income tax liability on the gifted property to the donee.
II. Once part or all of a taxable gift is made to a trust, the property can no longer be includible in the donor gross estate.
Answer : D
Many trust instruments provide for the removal of the original trustee. Valid reasons for removing the origin l trustee include which of the following?
l. A shift in trust situs is desirable because of changes in law.
II. The beneficiary has moved his or her residence to a distant state.
Answer : C
Which of the following types of partial interests in property may be allowed a charitable deduction for estate tax purposes?
l. A remainder interest in the donor vacation home
II. A testamentary gift of a percentage of a decedent entire interest in properly held in trust
Answer : A