HS 347 - Must Know Items

Question 1

What is the GSTT amount for 2020?

Generation-Skipping Transfer Tax

Answer 1

$11.58M

Question 2

Who is considered a Skip Person for GSTT purposes

Answer 2

• A skip person is a person who is two or
  more generations younger than the transferor.
• For transferees outside the family, a person more than 37 ½ years to 62 ½ years younger than the transferor is considered a second generation.
• A person more than 62 ½ years younger is considered third generation, that is, a skip person.

Question 3

Define
“Bequest”

Answer 3

The act of giving or leaving something by will

Question 4

Define
“QDRO”

Qualified Domestic Relation Order

Answer 4

A legal document, typically found in a divorce agreement, that recognizes that a spouse, former spouse, child, or other dependent is entitled to receive a predefined portion of the account owner’s retirement plan assets.

Question 5

Define
“Provisional Income”

Social Security

Answer 5

Provisional income is the sum of
the following:

* the taxpayer’s adjusted gross income
* the taxpayer’s tax-exempt interest for the year
* half of the taxpayer’s Social Security benefits for the year

Question 6

Define
“Living Will”

Answer 6

A living will—also known as an advance directive—is a legal document that specifies the type of medical care that an individual does or does not want in the event they are unable to communicate their wishes.

Question 7

Define
“Medical/Health Care Power of Attorney”

Answer 7

A medical power of attorney authorizes healthcare decisions to be made on your behalf by a designated individual