Free HS-330 Exam Braindumps
HS-330 Fundamentals of Estate Planning Test Questions 166–170 (page: 35)

Among the assets in a decedent's gross estate is stock in a closely held corporation that was left to a nephew. The interest passing to the nephew is required to bear the burden of all estate taxes and expenses. The relevant facts concerning this estate are:
* Adjusted gross estate $1,600,000
* Fair market value of stock in the
* closely held corporation 700,000
* Funeral expenses 30,000
* Executor's commission 50,000
* Federal and state death tax 160,000

What amount of closely held corporate stock can be redeemed under IRC Section 303 so that the redemption will be treated as a sale or exchange rather than a dividend distribution?

A man died in February of this year. Last year, when he learned that he had a terminal illness, he immediately made the following gifts and filed the required gift tax return:
Fair Market Value
Gift of listed stock to a
* qualified charity $100,000
* Gift of listed bonds to his wife 200,000
* Gift of a boat to his son 10,000
* Gift of a sports car to his daughter 10,000

What amount must be brought back to the man's estate as an adjusted taxable gift in the calculation of his federal estate taxes?

Which of the following statements concerning the inclusion and valuation of all or part of a commercial annuity in the estate of an annuitant is (are) correct?
1. A life annuity with a period certain is includible to the extent of the present value of any remaining guaranteed payments.
2. If the executor elects the alternate valuation date, an annuity is includible at its replacement cost 6 months after death.

On January 1, 2004 a father gave his daughter a $50,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are:
Date of issue: July 1, 1992 Premium paid on July 1, 2003 $800
Terminal reserve on July 1, 2003 5,000
Terminal reserve on July 1, 2004 6,000

What is the value of the policy for federal gift tax purposes?

An executor elects to value the assets of the estate at the alternative valuation date 6 months after death. Which of the following statements concerning the estate tax value of assets included in this estate is correct?