Missed Questions Flashcards
Fractional interest discount only applies to
real estate holdings
Why is a GRIT not considered “qualifying income”
Because the grantor gets whatever income is produced each year.
Percentage test for Section 6166
Value must exceed 35% of ADJUSTED gross estate
Section 303 Stock Redemption can only be used by…
A corporation. There MUST be stock involved. A partnership wouldn’t qualify.
Gift of life insurance - premiums deducted?
Yes, net premiums paid.
DNI
When a trust is obligated to pay out income, it get a deduction for those payments.
Does the elective share qualify for the marital deduction?
YES. It can be deducted from the gross estate.
3 year rule - releasing a retained interest
INCLUDED in the gross estate. For example, releasing a life estate and dying a year later. Included in the gross estate.
adjusted taxable gifts - does the estate tax or gift tax use?
Estate tax uses adjusted taxable gifts. Gift taxes uses taxable gifts.
Irrev trust where the grantor names himself as trustee, income and principal distributed at his discretion
gross estate would have to include the date of death value of the trust
Citizenship and giftin
status of the DONOR is irrelevant. All depends on whether the DONEE is a U.S. citizen or not.
Taxable termination - who pays GST?
The trustee
Taxable Distribution - who pays GST?
The beneficiary
If a participant’s spouse is the alternate payee of a QDRO
His or her interest may be distributed to an IRA owned by the spouse
Revocable Trust (power to revoke)
Since no gift is made, no gift tax calculation is necessary, and no gift tax is due.
True or False: All gratuitous transfers are subject to federal gift taxes.
False - Medical, Tuition, Political.
single life immediate annuity - medicaid eligibility
exempt
Which one of the following is the valuation date used to establishthe value of property transferred during the life of the transferor whenever an indirect skip is involved?
when a termination or distribution has occured
who pays the tax on a taxable distribution?
the beneficiary
who pays the tax on a taxable termination?
the trustee
Retaining an interest in an irrevocable trust and dying during the trust term
included in your gross estate
Section 6166 and no estate taxes due?
Unavailable!
Downside of a private annuity sale
Seller must report all gain in the year of sale
T or F: Heirs who have identical degrees of kinship to the decedent will receive equal shares.
False
