FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 27: The Federal Gift and Estate Taxes

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

Classify each statement appearing below. -Van takes out an insurance policy on Myrna's life and designates himself as the beneficiary. Myrna is Van's wife. Two years later, Myrna dies, and Van collects the insurance proceeds.

A) No taxable transfer occurs
B) Gift tax applies
C) Estate tax applies

D) All of the above
E) B) and C)

Correct Answer

verified

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

In his will, Hernando provides for $50,000 to go to the Madrid, Spain, school system. Because it is a foreign charity, the bequest will not qualify as a charitable deduction for estate tax purposes.

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

True/False

Review LaterAdd Note

Pauline sells antique furniture to her daughter, Nicole, for $10,000. If the furniture is really worth $100,000, Pauline has made a gift to Nicole of $100,000.

Becky made taxable gifts in 2000, 2010, and 2013. In computing the gift tax on the 2013 gift, she must consider all of the prior taxable gifts.

June made taxable gifts as follows: $200,000 in 1977, $600,000 in 1985, and $700,000 in 2001. In 2013, June dies leaving a taxable estate of $4,000,000. June's tax base for applying the unified tax rate schedules (for estate tax purposes) is:

The purpose of the marital deduction is to place married decedents in common law states on par with those in community property jurisdictions.

Classify each of the independent statements appearing below. -Bank account held as joint tenant with mother. Mother provided all of the funds. Mother survives.

In what manner does the tax law favor contributions to qualified tuition plans under § 529?

At the time of her death on June 6, Mary owned the following assets. -Taupe Corporation stock (cost $400,000, FMV $800,000). On May 4, Taupe declared a cash dividend, payable on June 15, to shareholders as of the record date of June 4. Mary's executor received the $40,000 dividend on the scheduled payment date. -City of Boise bonds (cost $800,000, FMV $780,000). Interest accrued to June 6 was $42,000. The executor eventually collected $50,000 (included post-death accrual of $8,000) on July 20. As to these transactions, how much is included in Mary's gross estate?

Classify each statement appearing below. -Howard establishes a trust, life estate to his children, remainder to the grandchildren. Under its terms, the trust is revocable by Howard. Howard later relinquishes the right to revoke the trust.

As reflected by the tax law, congressional policy relative to the Federal gift and estate taxes has been very inconsistent. Comment on this policy regarding the following time periods. a. From original enactment of these taxes up to the Tax Reform Act of 1976. b. From the Tax Reform Act of 1976 to EGTRRA. c. From EGTRRA to the Tax Relief Act (TRA) of 2010. d. From TRA of 2010 to ATRA of 2012.

Classify each statement appearing below. -Under her father's will, Faith is to receive 10,000 shares of GE common stock. Ten months after her father's death, Faith disclaims 10,000 shares.

Classify each statement appropriately. -Payment of unpaid gift taxes.

Classify each statement appearing below. -Homer purchases a U.S. savings bond listing title as: "Homer, payable to Bernice upon Homer's death." Bernice is Homer's sister.

Under his grandfather's will, Tad is entitled to receive shares of Kroger Corporation. For Federal tax purposes, Tad is allowed to disclaim some of these shares and accept the others.

Match each statement with the correct choice. Some choices may be used more than once or not at all. -Future interest

Distributions from retirement plans and proceeds from life insurance plans usually are not subject to probate. a. Why are they not part of the probate estate? b. When might they be included in the probate estate?

Which, if any, of the following is not a characteristic of the Federal estate tax?

At the time of his death on August 7, Michael owned the following assets. -Green Corporation stock (cost $700,000, FMV $950,000). On July 20, Green declared a cash dividend, payable on August 17 to all shareholders as of the record date of August 8. Michael's executor receives the $64,000 dividend on the scheduled payment date. -Note receivable (face amount $600,000) payable on demand. The note was received by Michael two years previously from his daughter Addison. Addison used the loan to start a business which currently is very successful. In his will, Michael forgives the note. How much, as to these transactions, is included in Michael's gross estate?

In contrasting the computation of the Federal gift and estate taxes, are past taxable gifts handled in the same fashion? Explain.