Chapter 11 TF Flashcards
For passing property to a nonmarital partner, a revocable trust may be a more reliable estate planning vehicle than a bequest under a will because a trust is generally less subject to judicial challenge.
True
Domestic partners in nontraditional living situations are unable to purchase life insurance on the life of a partner because of the insurable interest requirement.
False. It may be possible for unmarried partners to meet the insurable interest requirement by establishing an irrevocable life insurance trust. The trust owns the policy for the benefit of the surviving partner-beneficiary.
Judicial guardianship or conservatorship is generally an unpleasant court proceeding that most families try to avoid.
True
Elder law durable powers of attorney are a special type of power of attorney because, as a safeguard from abuse, they require at least two attorneys-in-fact or agents acting on behalf of the elderly principal.
False. Although two or more agents may be appointed under an elder law power of attorney, the document does not require the principal to have more than one attorney-in-fact.
The dependent-care credit is the same whether the working spouse has one or more children.
False. Taxpayers may receive an additional credit for a second child, but not for more than two children.
The dependent-care credit is allowed for “eligible expenses” for the care of a “qualifying individual.”
True
The adoption credit must be claimed for the tax year following the year in which the expenses are paid, unless the adoption becomes final during or before the year they are paid.
True
Qualified adoption expenses, for purposes of the adoption tax credit, do not include costs associated with the adoption of a child of the taxpayer’s spouse.
True
The amount of the tax credit for children (without regard to phase-out rules) is currently $1,000.
True
For purposes of the tax credit for children, a “qualifying child” must be under the age of 19 at the end of the tax year.
True
