Solved by verified expert :2327. CHAPTER
19—FAMILY TAX PLANNING Question TF #46
Two years ago, Ellen created a revocable trust—life estate to her children,
remainder to her grandchildren. When Ellen dies in the current year, none of
the trust is included in her probate estate.
a.
True
b. False
2328. CHAPTER
19—FAMILY TAX PLANNING Question TF #47
Several years ago, Tad purchased land listing ownership as “Tad, Ellen, and
Kay, equal tenants in common.” In the current year, Kay dies first. None of the
value of the land is included in Kay’s probate estate.
a.
True
b. False
2329. CHAPTER
19—FAMILY TAX PLANNING Question TF #48
Cost and time are usually saved by passing ownership to out-of-state real
estate by death rather than by gift.
a.
True
b. False
2330. CHAPTER
19—FAMILY TAX PLANNING Question TF #49
Derrick dies, and under the terms of his will, all of his property passes
outright to Dion (Derrick’s surviving wife). Under these circumstances, there
is no need for Derrick’s executor to make a QTIP election.
a.
True
b. False
2331. CHAPTER
19—FAMILY TAX PLANNING Question TF #50
The deferral approach to the estate tax marital deduction (as opposed to the
equalization approach) is advisable if the surviving spouse is in poor health
and has many assets.
a.
True
b. False
2332. CHAPTER
19—FAMILY TAX PLANNING Question TF #51
Under proper circumstances, a disclaimer by an heir may increase the charitable
deduction allowed a decedent.
a.
True
b. False
2333. CHAPTER
19—FAMILY TAX PLANNING Question TF #52
Because of the estate tax deduction, a testamentary bequest to charity is
preferable to a lifetime transfer.
a.
True
b. False
2334. CHAPTER
19—FAMILY TAX PLANNING Question TF #53
Ramon sells a parcel of land (basis of $100,000; fair market value of $300,000)
to his church. As long as the selling price does not exceed $100,000, Ramon
recognizes no gain on the sale.
a.
True
b. False
2335. CHAPTER
19—FAMILY TAX PLANNING Question TF #54
Leona sells land held as an investment (basis of $20,000; fair market value of
$200,000) to her church for $20,000. Leona is not allowed a charitable
deduction for income tax purposes since she recovered her cost of $20,000.
a.
True
b. False
2336. CHAPTER
19—FAMILY TAX PLANNING Question TF #55
Whether an organization is a qualified
charity for estate tax purposes depends on its status on the date the transfer
takes place, and not when the will is executed.
a.
True
b. False
2337. CHAPTER
19—FAMILY TAX PLANNING Question TF #56
Herbert leaves one-half of his estate to his wife, Ramona, and the remainder to
a qualified charity. Herbert’s estate taxes would not be reduced if Ramona disclaims her interest in favor of the
charity.
a.
True
b. False
2338. CHAPTER
19—FAMILY TAX PLANNING Question TF #57
A disclaimer by a surviving spouse will generate additional estate tax since it
reduces the amount of marital deduction allowed.
a.
True
b. False
2339. CHAPTER
19—FAMILY TAX PLANNING Question TF #58
For the IRS to grant a discretionary extension of time to pay estate taxes
(under § 6161), the executor need not show that the estate would otherwise
undergo undue hardship.
a.
True
b. False
2340. CHAPTER
19—FAMILY TAX PLANNING Question TF #59
In satisfying the more-than-35% test for qualification under § 6166, interests
in multiple closely held businesses are aggregated when the decedent’s gross
estate includes 20% or more of the value of each such business.
a.
True
b. False
2341. CHAPTER
19—FAMILY TAX PLANNING Question TF #60
In satisfying the more-than-35% test of § 6166 (i.e., extended estate tax
payment schedule relative to an interest in a closely held business), some
prior gifts the decedent may have made must be considered.
a.
True
b. False
2342. CHAPTER
19—FAMILY TAX PLANNING Question TF #61
A decedent owned 25% of the voting stock of Siskin Corporation. Siskin has 53
shareholders. The decedent’s estate can still qualify for the § 6166 election.
a.
True
b. False
