Quiz On Account Statement: Trivia Exam!

Increases the value of the gross estate

Decreases the value of the gross estate (B)

Decreases the estate tax liability (after reduction for tax credits). (C)

Both B and C are required

Six months

One year

Three years

No minimum time period exists

$0

$25,000

$35,000

$100,000

Six months

One year

Three years

No minimum time period exists, but she must be alive at transfer of ownership

All beneficial interests be included in the decedent's estate

Post-1976 gifts by the decedent be included in the decedent's estate

Certain gifts made by the decedent within three years of the date of death are included in the decedent's gross estate.

Gift taxes on gifts made by the decedent or the decedent's spouse that are paid by the decedent or his estate during the three-year period ending with the decedent's date of death must be included in the decedent's gross estate.

$2,000,000

$2,300,000

$435,000

None of the above

$0

$400,000

$1,000,000

$1,200,000

The gross-up rule applies to the gift tax triggered by a gift during a three-year look-forward period

All gift taxes paid by the decedent on gifts made within five years of the date of death must be included in the gross estate

If a transferor retains voting rights in stock of a controlled corporation for the transferor's lifetime, the stock is included in the transferor's gross estate

All are false

If spouses are the only joint owners, only one-half of the value of the jointly owned property is included in the gross estate, regardless of the relative amount of consideration provided by either spouse

Special powers of appointment give the power holder less restricted powers than a general power of appointment

The gross estate does not include the value of life insurance policies on the decedent if the proceeds are receivable by the executor or for the benefit of the estate

All are false

The tax base for the federal estate tax is the total of the decedent's taxable estate and post-1976 taxable gifts

Property included in a decedent's gross estate consists of only that property to which the decedent held title

Funeral expenses are not deductible from the gross estate

All are false

None of the stock will be included in Martin's estate

The stock's value at the time of transfer to the trust will be included in Martin's estate

The value of the stock less the present value of the income receivable by Martin will be included in Martin's estate

The value of the stock at death will be included in Martin's estate

Expenses incurred in administering the estate

Casualty losses that occurred while administering the estate

Charitable contributions

All of the above

$1,000,000.

$1,500,000.

$780,800.

$3,500,000

The unified credit is the only credit common to both the gift and estate tax computation.

For estate tax purposes, publicly traded stocks are valued at their closing price on the date of death

Stocks traded on a stock exchange are valued at closing price for the date of death unless the alternate valuation date is elected

All are false

Marketable securities

Land.

Life insurance policies

Patents.

$99.00.

$95.33

$93.50

$91.67

The nature and history of the business

Earning capacity.

Dividend paying capacity.

All of the above

Comparable sales

Reproduction cost

Capitalization of earnings

All of the above

By an independent actuary

By an appraiser

By considering the fact that the transferor has died

Using actuarial tables

3 months after the date of death

6 months after the date of death

9 months after the date of death

12 months after the date of death

All interest and dividends received in year of death

Only interest and dividends received prior to the date of death

Only interest and dividends received after the date of death

None of the interest and dividends received

The "blockage" regulations allow the IRS to prevent the estate's executor from electing the alternate valuation date

If the alternate valuation date is elected, changes in value that occur solely because of a "mere lapse of time" usually are to be ignored

The alternate valuation date can be elected for estate tax purposes only if the election decreases the value of the gross estate and estate tax liability (after reduction for credits).

If property is sold within 6 months of the date of death, the alternative valuation date is the date of sale.

The alternate valuation date can be used for estate tax purposes only if the election increases the value of the gross estate

If the alternative valuation date is elected, changes in value that occur solely because of "mere lapse of time" must be ignored

Gross estate, a federal law concept, is generally smaller than the probate estate, a state law concept

All are false

A curtesy interest is a widower's interest in his deceased wife's property

All gifts made within three years of the date of death must be included in the gross estate

Dower rights are not the same as curtesy rights

All are false

Reversionary interests of less than 5% are includible in the gross estate

A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer

If a reversionary interest exceeds 3% of the property's value, the amount that is included in the estate is not the value of the reversionary interest, but rather the date-of-death value of the gifted property less the value of intervening life estates

All are false