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.
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2- What are the benefits associated with portability?
(A) Preserves step up in basis on survivorâs death.
(B) Better accommodates large qualified plans than credit shelter trusts.
(C) Surviving spouse can use the deceased spouseâs unused exclusion amount without having to create complex trusts or use other tax-saving techniques.
(D) All of the above.