The marital deduction for transfers to a U.S. citizen spouse is:
A. Unlimited.
B. Limited to $15,000 per year of marriage.
C. Limited to $157,000 (as indexed for inflation for 2020).
D. Unlimited except for lifetime gifts.
A. Unlimited.
Which of the following statements is incorrect?
A. The remainder beneficiary of a QTIP Trust is chosen by the surviving spouse.
B. When too few assets pass to a decedent's surviving spouse, and as such the decedent's taxable estate is greater than the app
A. The remainder beneficiary of a QTIP Trust is chosen by the surviving spouse.
The ultimate beneficiary of a QTIP Trust is chosen by the grantor of the QTIP Trust. All of the other statements are correct.
Which of the following will qualify for the unlimited martial deduction (assume no special elections by the executor)?
A. Hap leaves his spouse, a U.S. citizen, an income interest in a charitable remainder trust. The remainder beneficiary is the Red Cross
A. Hap leaves his spouse, a U.S. citizen, an income interest in a charitable remainder trust. The remainder beneficiary is the Red Cross.
Choice a does not qualify because it is a terminable interest and exceeds the maximum 6 month survivorship period per
When Ivy died this year, her gross estate included cash of $2,000,000 held in a checking account in her name, stocks valued at $10,000,000 titled JTWROS with her spouse, Henrique, a U.S. citizen, a $1,000,000 life insurance policy on her life with her son
C. $14,705,000.
Only the net amount received by the surviving spouse qualifies for the marital deduction. Ivy's gross estate is $16,000,000. This is reduced by the $1,020,000 received by Ivy's son (her spouse did not receive it, so it does not count) and
Bob and Mary are married and live in California, a community property state. Their community property consists of real property with an adjusted basis of $300,000 and a fair market value of $750,000 and other property with an adjusted basis of $100,000 an
A. Real Property of $750,000 and Other Property of $75,000.
Which of the following statements regarding the estate tax marital deduction is correct?
A. A QTIP trust will qualify for the marital deduction, if the executor makes the appropriate election.
B. The surviving spouse must be a U.S. citizen for the deceden
A. A QTIP trust will qualify for the marital deduction, if the executor makes the appropriate election.
The marital deduction applies in both community property and separate property states. There is no need for the surviving spouse to be a U.S. citizen i
Which of the following is not an advantage of the marital deduction?
A. The surviving spouse receives a stepped up basis on property qualifying for the marital deduction.
B. There is no estate tax at the first spouse's death.
C. If the first spouse to die
C. If the first spouse to die took full advantage of the marital deduction, all property in the surviving spouse's estate at his or her death is subject to the federal estate tax.
A QTIP trust must:
A. Give the surviving spouse the right to require only income producing assets be in the trust.
B. Give the surviving spouse a general power of appointment over the assets.
C. Be in the form of a testamentary trust.
D. Permit the truste
A. Give the surviving spouse the right to require only income producing assets be in the trust.
Maria is a citizen and resident of Mexico. She was married to Jose, a U.S. citizen, and is his sole survivor. Which of the following techniques or arrangements would be useful if his gross estate is $15,000,000?
A. A Qualified Domestic Trust (QDOT).
B. Th
A. A Qualified Domestic Trust (QDOT).
Which statement about the gift tax marital deduction is incorrect?
A. One spouse may gift any amount to the other spouse without gift tax as long as the gift is not terminal interest property.
B. The regular annual exclusion available to all donees is ava
B. The regular annual exclusion available to all donees is available for gifts to non-citizen spouses
In which of the following situations would the use of a QDOT be appropriate?
A. Harold dies and does not have a surviving spouse but has a significant other.
B. Franz, who is not a U.S. citizen, dies and is survived by his wife, Francine, who is a U.S. ci
C. Tom dies and is survived by his wife, Tina, who is not a U.S. citizen.
Of the following, which is not a benefit of the unlimited marital deduction?
A. The use of the unlimited marital deduction can shelter future appreciation of an asset from estate taxes at the death of the second-to-die spouse.
B. The unlimited marital ded
A. The use of the unlimited marital deduction can shelter future appreciation of an asset from estate taxes at the death of the second-to-die spouse.
Property that transfers to the second-to-die spouse is eligible for the marital deduction and, to the ext
Amanda has been married to Javier for 25 years. Javier is a Honduran citizen. Amanda would like to make an inter vivos transfer to Javier. What is the maximum amount that Amanda can transfer to Javier without incurring transfer taxes or utilizing any of h
D. $157,000.
There is a special annual exclusion for non-citizen spouses of $157000. A spouse can transfer up to $157,000 to his non-citizen spouse without incurring gift taxes.
Which of the following qualifies for the unlimited marital deduction?
A. An income beneficiary of a CRUT who is a nonresident alien spouse.
B. An outright bequest to resident alien spouse.
C. An outright bequest to a resident spouse who, prior to the dece
C. An outright bequest to a resident spouse who, prior to the decedent's death was a non-citizen, but who after the decedent's death and before the estate tax return was filed, became a U.S. citizen.
Which of the following is not a requirement of the unlimited marital deduction?
A. The surviving spouse must be a U.S. citizen.
B. The surviving spouse must receive property through the estate.
C. The gross value of qualifying property left to the survivi
C. The gross value of qualifying property left to the surviving spouse is included in the marital deduction.
Only the net value, not the gross value, of qualifying property left to the surviving spouse is included in the marital deduction. The term "net v
Of the following statements, which is false?
A. Property that is not included in the decedent's gross estate cannot qualify for the unlimited marital deduction.
B. The death benefit of a life insurance policy included in a decedent's gross estate is not e
B. The death benefit of a life insurance policy included in a decedent's gross estate is not eligible for the unlimited marital deduction, even if the surviving spouse is the listed beneficiary and receives the proceeds.
If the death benefit of a life ins
Anne recently died. Anne is survived by her husband, Edward, and daughter, Catherine. Which of the following would be a qualifying property transfer for the purposes of the unlimited marital deduction?
A. The $1,000,000 life insurance policy on Anne's lif
B. Anne leaves ownership of certain copyrights to Edward.
Which of the following is NOT a terminable interest?
A. An ownership interest in a life insurance policy
B. A life estate in a home.
C. An interest in a patent
D. An interest in property for a term equal to an individual's lif
A. An ownership interest in a life insurance policy
Raymond's net worth is $20,000,000, consisting entirely of his separate property. His wife's net worth is $2,000,000, consisting entirely of her separate property. As part of Raymond's estate plan, he would like to transfer as much to his wife as possible
C. At Raymond's death, $11,580,000 should be transferred to a bypass trust for the benefit of Raymond's children. Raymond's wife should be given the power to invade the bypass trust for an ascertainable standard. The remaining assets should be given outri
Maria is a citizen and resident of Mexico. She was married to Jose, a U.S. citizen, and is his sole survivor. Which of the following techniques or arrangements would be useful if his gross estate is $15,000,000?
A. A Qualified Domestic Trust (QDOT).
B. A
A. A Qualified Domestic Trust (QDOT).
Within how many months must an heir file a qualified disclaimer for it to be valid?
A. 6 months.
B. 9 months.
C. 12 months.
D. 15 months.
B. 9 months.
Janice died in 2020. She had been married to Chandler for 17 years, and the two had amassed a community property estate of $29,500,000. Janice's will directs three specific bequests to her mother, brother, and father of $700,000, $450,000, and $200,000, r
B. $3,170,000.
Since Janice and Chandler own the property as community property, each is deemed to own 1/2 of the property. In this case, Janice would include $14,750,000 in her federal gross estate. The three specific bequests totaling $1,350,000 are dir
Given only the following information, which would qualify for the estate tax unlimited marital deduction?
A. Property transferring to a surviving spouse as beneficiary of an irrevocable trust created six years ago. At the time of the trust's creation, the
B. A bequest of 2,000 shares of Holiday Incorporated stock to a surviving spouse. The surviving spouse is a U.S. citizen.
Option a is incorrect as a completed transfer of property to an irrevocable trust is not included the decedent's gross estate, and th
Phoebe is the income beneficiary of a QTIP trust, which includes a provision stating that any estate tax due on the QTIP's assets at Phoebe's death are to be paid by Phoebe's estate and not from the QTIP assets. When Phoebe dies, which of the following wi
B. Phoebe's estate is entitled to be reimbursed for any estate tax paid by the estate on assets held in the QTIP trust.
The QTIP is liable for its proportional share of any estate tax and will have to reimburse the estate. The taxes will be the same regar
If a decedent bequeaths the outright ownership of his house to his children subject to his wife's right to live in that house for the remainder of her life, which of the following statements is correct?
A. If the wife disclaims her interest in the house,
D. If the executor makes a QTIP election on the house, the house is not included in the decedent's taxable estate.