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| Section | Objectives |
|---|---|
| Topic 1: Wills and Probate | - Probate process
|
| Topic 2: Estate and Gift Taxation | - Gift tax rules
|
| Topic 3: Introduction to Estate Planning | - Purpose and objectives of estate planning
|
| Topic 4: Trusts | - Trust taxation and control
|
| Topic 5: Property Transfer and Liquidity Planning | - Non-probate transfers
|
The following are facts concerning a decedent's estate:
*Taxable estate $1,800,000
*Pre-1977 taxable gifts 100,000
*Post-1976 adjusted taxable gifts 150,000
*Post-1976 gifts made to a qualified charity 200,000
Correct Answer: C 🗳️
A widower dies leaving a net probate estate of $300,000. At the time of his death, his descendants are as follows:
A son, Joe, who has no children; A deceased daughter, Mary, whose two children, Irene and Sally, survive; and
A daughter, Anne, who has one child, Harry
Assuming that the widower's will provides for the distribution of his assets in equal shares to his children, per stirpes, which of the following correctly states the amounts each descendant will receive?
Correct Answer: B 🗳️
A father deeded a house as a gift to his daughter in 1990 but retained the right to live in it until his death. He died this year while still living in the house. The following are relevant facts:
The father bought the property in 1980 for $130,000. The fair market value of the property when the gift was made in 1990 was $150,000. The father filed a timely gift tax return but paid no gift tax because of the applicable credit amount. The fair market value of the property at the father's death was $220,000. The daughter sold the property 3 months after her father's death for $220,000. She had a gain of?
Correct Answer: D 🗳️
Which of the following statements concerning a grantor-retained annuity trust (GRAT) is correct?
Correct Answer: B 🗳️
All the following assets owned by a decedent pass by operation of law or by contract EXCEPT
Correct Answer: C 🗳️
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