Solved by verified expert :2168. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #65
Under the terms of a trust created by Billie, Jody (Billie’s brother) has the
right to determine how its income is to be divided among Billie’s children.
Jody holds a general power of appointment.
a.
True
b. False
2169. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #66
At the time of her death, Abigail held a general power of appointment over a
trust created by her grandmother in 1990. Since Abigail never exercised the
general power, none of the trust is included in her gross estate.
a.
True
b. False
2170. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #67
Rachel owns an insurance policy on the life of Albert with Belle as the
designated beneficiary. Upon Rachel’s prior death, nothing regarding this
policy is included in her gross estate.
a.
True
b. False
2171. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #68
Frank owns an insurance policy on the life of Cynthia, with Leon as the
designated beneficiary. Upon Cynthia’s prior death, Frank is treated as making
a gift of the insurance proceeds to Leon.
a.
True
b. False
2172. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #69
Georgia owns an insurance policy on the life of Jake, with Scarlet as the
designated beneficiary. Upon Scarlet’s prior death, no transfer tax
consequences result.
a.
True
b. False
2173. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #70
At the time of his death in 2011, Leroy owed Federal income taxes on income
earned in 2009. Leroy’s estate cannot claim an estate tax deduction for the
income tax it pays.
a.
True
b. False
2174. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #71
In arriving at the taxable estate, expenses incurred in administering community
property are deductible only in proportion to the deceased spouse’s interest in
the community.
a.
True
b. False
2175. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #72
At the time of her death in 2011, Emma still owed $36,000 on her church pledge
for the year. Even if church pledges are not an enforceable obligation in the
state where Emma resided, her estate can claim a deduction for the $36,000 it
later pays.
a.
True
b. False
2176. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #73
As a result of an auto accident from which she later died, Irene totaled a
Bentley worth $95,000. If the insurance company covers $60,000 of the loss,
Irene’s estate can claim a deduction of $35,000 in arriving at the taxable
estate.
a.
True
b. False
2177. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #74
At the time of his death, Hal owned 10 cemetery lots worth $40,000 ($4,000
each) for use by himself and his family. These lots are included in Hal’s gross
estate and a deduction of $4,000 is allowed the estate.
a.
True
b. False
2178. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #75
Some of the charitable organizations that qualify for estate tax purposes do not
qualify for income tax purposes.
a.
True
b. False
2179. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #76
In his will, Hernando provides for $50,000 to go to the Madrid, Spain, school
system. Even though it is a foreign charity, the bequest will qualify as a
charitable deduction for estate tax purposes.
a.
True
b. False
2180. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #77
Manfredo makes a donation of $50,000 to the church where he was baptized in
Mexico City. The gift does qualify as a charitable contribution for Federal
income tax purposes.
a.
True
b. False
2181. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #78
The purpose of the marital deduction is to place married decedents in common
law states on par with those in community property jurisdictions.
a.
True
b. False
2182. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #79
At the time of his prior death, Raul owned a residence with his wife, Manuela,
as tenants by the entirety. The residence was purchased by Manuela ten years
ago at a cost of $300,000 and has a fair market value of $1.4 million. Raul’s
estate will be allowed no marital deduction as to the property.
a.
True
b. False
2183. CHAPTER
18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #80
Sally’s will passes real estate to Otto (her surviving spouse). The real estate
is worth $800,000 but is subject to a mortgage of $200,000. The transfer
provides Sally’s estate with a marital deduction of $600,000.
a.
True
b. False
