Estate Planning Practice Exam Flashcards
Do JTTEN and TBE allow for management of rental properties in the cash of someone’s physical or mental incapacity?
Yes
add will clauses
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For someone traveling that wants to grant a POA; what type of powers should it include? Why?
Springing, Durable, Limited; because it only springs during travel, the power doesn’t allow the holder to appoint property to himself an by limiting the power it keeps it out of the holders estate, unlike a GPOA
Does a TIC have a survivorship feature?
NO
What types of ownership are for married couples?
TBE, Comm Prop
Does separate property become community property if a couple moves from a common law state to a community property state?
Generally, no
Can couples living in a comm prop state elect to treat separate property as comm prop?
NO
How is gifted property treated in a community property state?
As separate property unless person elects to treat as comm prop or comminges the assets
How are life insurance proceeds treated for gross estate and probate estate?
Included in gross estate, not included in probate estate
How does the contribution rule apply to JTWROS for married and unmarried couples?
Married automatically assumes 50/50, unmarried depends on contribution
If Crystal makes a loan to Holly with a home as collateral, can Holly deduct the imputed intereset on her income tax return?
Yes
when does a contribution to a revocable trust require filing a gift tax return?
when the trust has current beneficiaries, e.g. Joelle creates a revocable living trust and names her son as an income beneficiary who receives an income distribution
When is an interest free loan not subject to gift tax?
When it is below $10,000 it meets the exclusion from imputed interest rules.
Is gift splitting required for community property assets?
No, gifts are deemed to be made 50% by each spouse.
What are the 3 year assets for gross estate
- Life insurance within 3 years
- Gift tax paid within 3 years
