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Estate Planning

Please provide little explanation with the answers. ...............................................................................................

1- John and Mary are interested in passing the maximum amount to their grandchildren upon their deaths. Can they utilize portability for GST purposes to double the amount that can pass transfer tax free?

(A) Yes, portability applies to all transfer taxes.

(B) No, portability does not apply to GST tax.

...............................................................................................

2- Which of the following statements concerning complex trusts is (are) correct?

I. The trust must be required to accumulate trust income.

II. The trustee may be given the authority to make gifts of trust property to charity.

(A) I only.

(B) II only.

(C) Both I and II.

(D) Neither I nor II.

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Nestor Rutherford
Nestor RutherfordLv2
29 Sep 2019
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Related questions

Estate Planning

Please provide little explanation with the answers.

............................................................................

1- John is a widower. Mary, his wife, passed away in 2006. Does “portability” apply to allow John to use Mary’s unused annual exclusion?

(A) Yes

(B) No

............................................................................

2- What are the benefits associated with portability?

(A) Preserves step up in basis on survivor’s death.

(B) Better accommodates large qualified plans than credit shelter trusts.

(C) Surviving spouse can use the deceased spouse’s unused exclusion amount without having to create complex trusts or use other tax-saving techniques.

(D) All of the above.

............................................................................

3- John and Mary are interested in passing the maximum amount to their grandchildren upon their deaths. Can they utilize portability for GST purposes to double the amount that can pass transfer tax free?

(A) Yes, portability applies to all transfer taxes.

(B) No, portability does not apply to GST tax.

Estate Planning

Please provide little explanation with the answers. ...............................................................................................

1- Which of the following statements concerning the filing of the federal estate tax return is (are) correct?

I. An estate tax return must be filed for all persons dying after 1987.

II. There is an automatic 2-year extension for filing the federal estate tax return of a U.S.citizen who dies in a foreign country.

(A) I only.

(B) II only.

(C) Both I and II.

(D) Neither I nor II.

...............................................................................................

2- What are the benefits associated with portability?

(A) Preserves step up in basis on survivor’s death.

(B) Better accommodates large qualified plans than credit shelter trusts.

(C) Surviving spouse can use the deceased spouse’s unused exclusion amount without having to create complex trusts or use other tax-saving techniques.

(D) All of the above.

Estate Planning

Please provide little explanation with the answers. ...............................................................................................

1- As a result of successful business investments made during their 35 years of marriage, Peggy and Bob have acquired substantial wealth. To reduce their estates and minimize taxes, their financial planner suggests they start a gifting program to their children and grandchildren. Assuming no prior gifts, if they elect to gift split, what is the maximum amount Peggy and Bob could give directly to their grandchildren (ignoring the annual exclusion) without incurring a generation-skipping transfer tax?

(A) $5,430,000.

(B) $2,000,000.

(C) $10,860,000.

(D) $3,000,000.

...............................................................................................

2- Which of the following statements concerning the federal estate tax marital deduction is (are) correct?

I. It applies only to decedents of common-law states.

II. It applies only to property interests included in a decedent’s gross estate.

(A) I only.

(B) II only.

(C) Both I and II.

(D) Neither I nor II.

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