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Exam 27: Family Tax Planning

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Question 41

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Lyle and Kelly are brother and sister.Using his funds,Lyle purchases land,listing title as: "Lyle and Kelly,joint tenants with right of survivorship." If Kelly dies first,none of the land is included in her gross estate.

A) True
B) False

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Question 42

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Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Surviving spouse's share of the community property.

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Question 43

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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 real estate will be included in her gross estate.

In the past,the amount of the unified tax credit always has been the same for both transfers by gift and transfers by death.

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -Maggie purchased an insurance policy on Jim's life and designated Susan as the beneficiary.

A father wants to give a parcel of land to his two children.If he wants the survivor to have sole ownership,he should list ownership of the property as joint tenants.

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

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?

Mark dies on March 6,2015.Which,if any,of the following items is not included in his gross estate?

Concerning the election to split gifts under § 2513,which of the following statements is incorrect?

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -Meg gives her 18-year-old son money for his college tuition and living expenses (e.g. ,room and board).

Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Interest on municipal bonds accrued after death.

Classify each of the independent statements appearing below. a.Some or all of the interest included in the decedent's gross estate.b.None of the interest included in the decedent's gross estate. -Note receivable issued by a grandson and forgiven by the decedent in her will.

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 casualty loss of $35,000 in arriving at the taxable estate.

In which,if any,of the following independent situations has Trent made a gift?

Classify each statement appearing below. a.No taxable transfer occurs b.Gift tax applies c.Estate tax applies -​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.

In some cases,the Federal gift tax can be imposed on someone other than the donor.

Ben and Lynn are married and have four pre-teen grandchildren.They want to contribute to a § 529 plan on behalf of their education.For 2015,what is the maximum amount they can transfer to the plan without making a taxable gift?

Becky made taxable gifts in 2013,2014,and 2015.In computing the gift tax on the 2015 gift,she must consider all of the prior taxable gifts.

Waldo is his mother's sole heir and is the designated executor of her estate.Although the alternate valuation date would yield a smaller gross estate and less estate tax liability,the § 2032 election is not made.Instead,Waldo files a Form 706 for his mother's estate using higher date of death values.Why?