The alternate valuation date for an estate
A) is elected by beneficiaries
B) should be elected if the size of the estate increases to receive higher bases
C) values the estate six months after the date of death
D) does not require the filing of an estate tax return to make the election
Which of the following is not an advantage of lifetime gifts?
A) The annual exclusion can shield thousands of dollars from taxation.
B) Property appreciation does not enter the estate tax calculation.
C) A stepped-up basis is secured for appreciated gifts.
D) Gift-splitting allows spouses to combine their annual exclusions
Which of the following is an advantage to making a lifetime transfer of property to a donee?
A) It may receive a basis higher than fair market value for the gift tax.
B) It removes property from the taxable estate.
C) It receives a step-up in basis to fair market value.
D) Appreciation escapes taxation when it is sold at a later date.
When comparing lifetime transfers to testamentary transfers, which of the following would be preferable as a testamentary transfer?
A) The property to be transferred has declined in value.
B) The property has increased in value.
C) The property is an insurance policy on the life of the transferor.
D) The property transferred is transferred to a qualified charity.