Missed Questions

Question 1

Fractional interest discount only applies to

Answer 1

real estate holdings

Question 2

Why is a GRIT not considered “qualifying income”

Answer 2

Because the grantor gets whatever income is produced each year.

Question 3

Percentage test for Section 6166

Answer 3

Value must exceed 35% of ADJUSTED gross estate

Question 4

Section 303 Stock Redemption can only be used by…

Answer 4

A corporation. There MUST be stock involved. A partnership wouldn’t qualify.

Question 5

Gift of life insurance - premiums deducted?

Answer 5

Yes, net premiums paid.

Question 6

DNI

Answer 6

When a trust is obligated to pay out income, it get a deduction for those payments.

Question 7

Does the elective share qualify for the marital deduction?

Answer 7

YES. It can be deducted from the gross estate.

Question 8

3 year rule - releasing a retained interest

Answer 8

INCLUDED in the gross estate. For example, releasing a life estate and dying a year later. Included in the gross estate.

Question 9

adjusted taxable gifts - does the estate tax or gift tax use?

Answer 9

Estate tax uses adjusted taxable gifts. Gift taxes uses taxable gifts.

Question 10

Irrev trust where the grantor names himself as trustee, income and principal distributed at his discretion

Answer 10

gross estate would have to include the date of death value of the trust

Question 11

Citizenship and giftin

Answer 11

status of the DONOR is irrelevant. All depends on whether the DONEE is a U.S. citizen or not.

Question 12

Taxable termination - who pays GST?

Answer 12

The trustee

Question 13

Taxable Distribution - who pays GST?

Answer 13

The beneficiary

Question 14

If a participant’s spouse is the alternate payee of a QDRO

Answer 14

His or her interest may be distributed to an IRA owned by the spouse

Question 15

Revocable Trust (power to revoke)

Answer 15

Since no gift is made, no gift tax calculation is necessary, and no gift tax is due.

Question 16

True or False: All gratuitous transfers are subject to federal gift taxes.

Answer 16

False - Medical, Tuition, Political.

Question 17

single life immediate annuity - medicaid eligibility

Answer 17

exempt

Question 18

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?

Answer 18

when a termination or distribution has occured

Question 19

who pays the tax on a taxable distribution?

Answer 19

the beneficiary

Question 20

who pays the tax on a taxable termination?

Answer 20

the trustee

Question 21

Retaining an interest in an irrevocable trust and dying during the trust term

Answer 21

included in your gross estate

Question 22

Section 6166 and no estate taxes due?

Answer 22

Unavailable!

Question 23

Downside of a private annuity sale

Answer 23

Seller must report all gain in the year of sale

Question 24

T or F: Heirs who have identical degrees of kinship to the decedent will receive equal shares.

Answer 24

False