Question 1

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Paid medical expenses prior to death.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 2

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Purchased insurance policy that pays all funeral expenses.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 3

Jen inherits her father's farm,and the executor of the estate properly makes a § 2032A election.Six years later,Jen sells the farm.It is determined that the election,which allowed $600,000 in value to be excluded,saved $120,000 in estate taxes.What are Jen's tax options? Tax consequences?

Accepted Answer

The answer of Jen inherits her father's farm,and the executor...

Question 4

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Purchased a straight life annuity from an insurance company.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 5

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Spouse purchased residence listing ownership as tenants by the entirety.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 6

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Two years prior to her death,the insured transferred by gift all of the incidents of ownership in an insurance policy on her life.The gift was to her son,the beneficiary of the policy.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 7

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Created during life an irrevocable trust naming others as beneficiaries.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 8

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Purchased real estate designating herself and her children as equal tenants in common.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 9

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-After death,vacation home is destroyed by fire.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 10

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Created during lifetime an irrevocable trust in which a life estate is retained with remainder interest passing to the children.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 11

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Purchase out-of-state realty.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 12

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Paid a gift tax on a gift made two years prior to death of the donor.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 13

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Purchased a certificate of deposit listing daughter as the beneficiary under a Totten trust payable on death designation.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 14

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Prior to death filed for a refund of overpaid income taxes.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 15

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Mother purchases land listing ownership with decedent as joint tenants.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 16

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Made life insurance payable to children.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 17

Match each statement with a correct choice. Choices may be used more than once.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Brother purchased land listing ownership with decedent as tenants in common.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 18

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a.Increases the probate estate
b.Decreases the probate estate
c.Has no effect on the probate estate
-Made lifetime gifts.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 19

Presuming the § 2032A election is properly made,what value is included in the gross estate (in 2008)in each of the following independent situations?

Accepted Answer

The answer of Presuming the § 2032A election is properly...

Question 20

Spencer makes a gift of stock in Swallow Corporation,which is not closely held but is traded in an over-the-counter market.The transactions involving this stock that occurred closest to the date of gift took place seven trading days before (mean selling price of $90)and five days after (mean selling price of $70).Determine the fair market value of the Swallow stock on the date of the gift.

Accepted Answer

The answer of Spencer makes a gift of stock in...

Quiz 18: Family Tax Planning

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Paid medical expenses prior to death.

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Purchased insurance policy that pays all funeral expenses.

Jen inherits her father's farm,and the executor of the estate properly makes a § 2032A election.Six years later,Jen sells the farm.It is determined that the election,which allowed $600,000 in value to be excluded,saved $120,000 in estate taxes.What are Jen's tax options? Tax consequences?

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Purchased a straight life annuity from an insurance company.

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Spouse purchased residence listing ownership as tenants by the entirety.

Match each statement with the correct choice. Some choices may be used more than once or not used at all. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Created during life an irrevocable trust naming others as beneficiaries.

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Purchased real estate designating herself and her children as equal tenants in common.

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -After death,vacation home is destroyed by fire.

Match each statement with the correct choice. Some choices may be used more than once or not used at all. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Purchase out-of-state realty.

Match each statement with the correct choice. Some choices may be used more than once or not used at all. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Paid a gift tax on a gift made two years prior to death of the donor.

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Prior to death filed for a refund of overpaid income taxes.

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Mother purchases land listing ownership with decedent as joint tenants.

Match each statement with the correct choice. Some choices may be used more than once or not used at all. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Made life insurance payable to children.

Match each statement with a correct choice. Choices may be used more than once. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Brother purchased land listing ownership with decedent as tenants in common.

Match each statement with the correct choice. Some choices may be used more than once or not used at all. a.Increases the probate estate b.Decreases the probate estate c.Has no effect on the probate estate -Made lifetime gifts.

Presuming the § 2032A election is properly made,what value is included in the gross estate (in 2008)in each of the following independent situations?