Estate Planning Flashcards
When purchaing an insruance policy what amount is included in gross income and what amount is tax free when the individual that is insured passes away under the transfer for value rule?
Dealth benefit minus basis
Basis is tax free and remaining amount is ordinary income
Can an estate use the Alternative Valuation Date when the estate tax base is less than the estate tax exemption?
NO
Can an estate use the Alternative Valuation Date when all the assets pass to the surviving spouse and qualify for the marital deduction?
NO
Which of the following are not secured by collateral?
Self-Canceling Installment Note
Installment Sale
Private Annuity
Private Annuity
Property held as JTWROS is included in the decedents gross estate on the basis of what, if they are not married?
on the percentage that they contributed to the property
Can Gift spitting between spouses occur even if one spouse has no assets?
Yes
When is an estate considered overqualified?
When too much of the property is subject to estate tax due to a failure to make proper use of the marital deduction.
When is an estate considered underqualified?
too few assets pass to the surviving spouse
Are trust assets over which the decedent held a special (limited) power of appointment included in the decedents Gross Estate?
No
QDOT Trust
- Only appropraite for surviving spouse is not a U.S. citizen
- At least one trustee must be a U.S. citizen or a U.S. Corporation.
- ALL income must be distributed to surviving spouse each year
- QDOT treatment can be elected by the excutor of the decedents estate
Is a former spouse that is younger than 37 1/2 considered a skip person?
No a spouse or former spouse is NEVER considered a skip person
What is the DSUE election?
Deceased spouse unused election
