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Question;2151. Question TF #48;In determining whether a dividend issued on stock held by a decedent is;included in the gross estate, the record date (rather than the declaration or;payment dates) controls.;a.;True;b. False;2152. Question TF #49;At the time of her death, Rita held a promissory note from a loan she had made;to her son. Even if Rita?s will forgives the loan, the note is included in her;gross estate.;a.;True;b. False;2153. Question TF #50;At the time of his death, Gene held a Roth IRA account with his wife as the;designated beneficiary. The IRA is included in Gene?s gross estate.;a.;True;b. False;2154. Question TF #51;A surviving;spouse?s share of the community property is not included in the deceased;spouse?s gross estate.;a.;True;b. False;2155. Question TF #52;For estate tax purposes, a surviving spouse?s share of the community property;is handled in the same manner as a surviving spouse?s dower interest.;a.;True;b. False;2156. Question TF #53;In 2009, Katherine made some taxable gifts upon which she paid a Federal gift;tax of $96,000. If Katherine dies in 2011, the $96,000 is included in her gross;estate under the ?gross up? rule.;a.;True;b. False;2157. Question TF #54;In 2000, Irv creates a revocable trust, income payable to his children for;life, remainder to his grandchildren. In 2007, Irv relinquishes the power to;revoke the trust. If Irv dies in 2011, the trust is not included in his gross;estate.;a.;True;b. False;2158. Question TF #55;Cary and Bo are husband and wife. Using their community funds, they create a;trust, life estate to Bo, remainder to their children. Four years later, Bo;predeceases Cary. Nothing as to this trust is included in Bo?s gross estate.;a.;True;b. False;2159. Question TF #56;Using his;separate funds, Wilbur purchases an annuity which pays him a specified amount;until death. Upon Wilbur?s prior death, a reduced amount is to be paid to;Marcia for her life. Marcia predeceases Wilbur. Nothing concerning the annuity;contract is included in Marcia?s gross estate.;a.;True;b. False;2160. Question TF #57;Death does not defeat a deceased spouse?s interest in a tenancy by the;entirety.;a.;True;b. False;2161. Question TF #58;In 2010 and with $100,000, Ronald establishes a joint savings account with his;cousin, Allison. In 2011, Allison withdraws the $100,000 and disappears. Ronald;made a gift to Allison in 2011.;a.;True;b. False;2162. Question TF #59;Two brothers, Sam and Bob, acquire real estate as equal tenants in common. Of;the purchase price of $200,000, Sam furnished $80,000 while Bob provided the;balance. If Sam dies first ten years later when the real estate is worth;$600,000, his estate includes $240,000 as to the property.;a.;True;b. False;2163. Question TF #60;Harry and Brenda are husband and wife. Using his funds, Harry purchases real;estate which he lists as: ?Harry and Brenda, tenants by the entirety with right;of survivorship.? If Harry dies first, all of the real estate will be included;in his gross estate.;a.;True;b. False;2164. Question TF #61;Harry and Brenda are husband and wife. Using his funds, Harry purchases real;estate which he lists as: ?Harry and Brenda, tenants by the entirety with right;of survivorship.? If Brenda dies first, none of the value of the real estate;will be included in her gross estate.;a.;True;b. False;2165. Question TF #62;Lyle and Beatrice are brother and sister. Using his funds, Lyle purchases land;listing title as: ?Lyle and Beatrice, joint tenants with right of;survivorship.? If Lyle dies first, all of the land is included in his gross;estate.;a.;True;b. False;2166. Question TF #63;Ray purchases U.S. savings bonds which he lists as ?Ray and Donna? as;co-owners. Donna is Ray?s daughter. Donna predeceases Ray. No gift or estate;tax consequences result from this situation.;a.;True;b. False;2167. Question TF #64;Reba purchases U.S. savings bonds which she lists in the name of Rod, Reba?s;son. The purchase of the bonds does not constitute a gift.;a.;True;b. False;2168. Question TF #65;Under the terms of a trust created by Billie, Jody (Billie?s brother) has the;right to determine how its income is to be divided among Billie?s children.;Jody holds a general power of;appointment.;a.;True;b. False;2169. Question TF #66;At the time of her death, Abigail held a general power of appointment over a;trust created by her grandmother in 1990. Since Abigail never exercised the;general power, none of the trust is included in her gross estate.;a.;True;b. False;2170. Question TF #67;Rachel owns an insurance policy on the life of Albert with Belle as the;designated beneficiary. Upon Rachel?s prior death, nothing regarding this;policy is included in her gross estate.;a.;True;b. False;2171. Question TF #68;Frank owns an insurance policy on the life of Cynthia, with Leon as the;designated beneficiary. Upon Cynthia?s prior death, Frank is treated as making;a gift of the insurance proceeds to Leon.;a.;True;b. False;2172. Question TF #69;Georgia owns an insurance policy on the life of Jake, with Scarlet as the designated;beneficiary. Upon Scarlet?s prior death, no transfer tax consequences result.;a.;True;b. False;2173. Question TF #70;At the time of his death in 2011, Leroy owed Federal income taxes on income;earned in 2009. Leroy?s estate cannot claim an estate tax deduction for the;income tax it pays.;a.;True;b. False;2174. Question TF #71;In arriving at the taxable estate, expenses incurred in administering community;property are deductible only in proportion to the deceased spouse?s interest in;the community.;a.;True;b. False;2175. Question TF #72;At the time of her death in 2011, Emma still owed $36,000 on her church pledge;for the year. Even if church pledges are not an enforceable obligation in the;state where Emma resided, her estate can claim a deduction for the $36,000 it;later pays.;a.;True;b. False;2176. Question TF #73;As a result of an auto accident from which she later died, Irene totaled a;Bentley worth $95,000. If the insurance company covers $60,000 of the loss;Irene?s estate can claim a deduction of $35,000 in arriving at the taxable;estate.;a.;True;b. False;2177. Question TF #74;At the time of his death, Hal owned 10 cemetery lots worth $40,000 ($4,000;each) for use by himself and his family. These lots are included in Hal?s gross;estate and a deduction of $4,000 is allowed the estate.;a.;True;b. False;2178. Question TF #75;Some of the charitable organizations that qualify for estate tax purposes do;not qualify for income tax purposes.;a.;True;b. False;2179. Question TF #76;In his will, Hernando provides for $50,000 to go to the Madrid, Spain, school;system. Even though it is a foreign charity, the bequest will qualify as a;charitable deduction for estate tax purposes.;a.;True;b. False;2180. Question TF #77;Manfredo makes a donation of $50,000 to the church where he was baptized in;Mexico City. The gift does qualify as a charitable contribution for Federal income;tax purposes.;a.;True;b. False;2181. Question TF #78;The purpose of the marital deduction is to place married decedents in common;law states on par with those in community property jurisdictions.;a.;True;b. False;2182. Question TF #79;At the time of his prior death, Raul owned a residence with his wife, Manuela;as tenants by the entirety. The residence was purchased by Manuela ten years;ago at a cost of $300,000 and has a fair market value of $1.4 million. Raul?s;estate will be allowed no marital deduction as to the property.;a.;True;b. False;2183. Question TF #80;Sally?s will passes real estate to Otto (her surviving spouse). The real estate;is worth $800,000 but is subject to a mortgage of $200,000. The transfer;provides Sally?s estate with a marital deduction of $600,000.;a.;True;b. False;2184. Question TF #81;Lila is the owner and beneficiary of a policy on the life of her husband;Austin. Upon Austin?s prior death, the insurance proceeds paid to Lila do not;qualify for the marital deduction.;a.;True;b. False;2185. Question TF #82;To avoid the terminable interest limitation on the marital deduction, the;surviving spouse must be granted a general power of appointment over the trust;property, and a QTIP election must be;made.;a.;True;b. False;2186. Question TF #83;By his will, all of Rusty?s property passes outright to his wife, Patsy. As;Patsy was not given a general power of appointment or Rusty?s executor did not;make a QTIP election, Rusty?s estate is not allowed a marital deduction.;a.;True;b. False;2187. Question TF #84;In the case of a transfer by gift, a QTIP election causes the property to be;subject to the estate tax upon the death of the donee spouse.;a.;True;b. False;2188. Question TF #85;A marital;deduction can be allowed even if the surviving spouse is a nonresident alien.;a.;True;b. False;2189. Question TF #86;The current top Federal transfer tax rate of 35% is the highest that the rate;ever has been.;a.;True;b. False;2190. Question TF #87;The current Federal transfer tax rate of 35% is as low as any top rate that;ever has been imposed.;a.;True;b. False;2191. Question TF #88;The current $5 million exemption equivalent applies to both the Federal estate and gift taxes.;a.;True;b. False;2192. Question TF #89;The current $5 million exemption equivalent is not permanent but is scheduled;to expire after 2012.;a.;True;b. False;2193. Question TF #90;Since the credit;for state death taxes paid (under ? 2011) has been eliminated, no tax relief is;available to an estate that is subject to both Federal and state death taxes.;a.;True;b. False;2194. Question TF #91;Sidney dies and leaves property to his sister Giselle. Thirty months later;Giselle dies. Under ? 2013 (credit for tax on prior transfers), Giselle?s;estate can claim a full credit for any Federal estate taxes paid by Sidney?s;estate as to amounts passing to Giselle.;a.;True;b. False;2195. Question TF #92;In 2000, Katelyn inherited considerable property when her father died. When;Katelyn dies in 2011, her estate may be able to use ? 2013 (credit for tax on;prior transfers) as to some of the estate taxes paid by her father?s estate.;a.;True;b. False;2196. Question TF #93;At the time of Dylan?s death, he was a resident of Newark. He owns land located;in a foreign country, which is subject to that country?s death tax. This same;land also can be subject to the Federal estate tax.;a.;True;b. False;2197. Question TF #94;The U.S. has death tax conventions (i.e., treaties) with most of the countries;of the world.;a.;True;b. False;2198. Question TF #95;Eric dies at age 96 and is survived by his third wife, Monique (age 22), and a;granddaughter, Paula (age 50). Eric?s will divides his $11 million estate;between these two survivors. Both of these transfers are subject to the;generation skipping transfer tax (GSTT).;a.;True;b. False;2199. Question TF #96;Peggy gives $200,000 to her grandson. This is an example of a direct skip for;purposes of the GSTT (generation-skipping transfer tax).;a.;True;b. False


Paper#59260 | Written in 18-Jul-2015

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