Federal Estate Tax

Question 1

Types of assets entitled to lack of marketability discount

Answer 1

closely held business, Limited Partnership

Question 2

changing trustee to another third party - retained interest?

Answer 2

no

Question 3

Three year rules

Answer 3

• certain transfers of life insurance
• any gift tax paid out of pocket on gifts within three years of death. GROSS UP RULE.
• Any gift tax PAID.

Question 4

Adjusted Taxable Gifts

Answer 4

Taxable gifts made after 1976. Not included in the gross estate, they are added to the taxable estate.

Question 5

2503(b) trust - income distribution is mandatory or discretionary?

Answer 5

mandatory

Question 6

conservator vs guardian

Answer 6

conservator is money, guardian is people