A father plans to create a trust for the benefit of his 22-year-old son and wishes to take advantage of the gift tax annual exclusion. He has named a bank as trustee. Which of the following trust provisions would cause the gifts to be ineligible to qualify for the gift tax annual exclusion?1. The trust income is to be paid to the son or accumulated at the discretion of the trustee.2. The income is to be accumulated until the son reaches age 32 when all accumulated income and principal are to be distributed to him.
Answer(s): C
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 anyremaining guaranteed payments.2. If the executor elects the alternate valuation date, an annuity is includible at its replacement cost 6 months after death.
Answer(s): D
Generally all the following statements concerning life insurance arrangements for partnership buy sell agreements are correct EXCEPT:
Answer(s): A
Which of the following statements concerning a testamentary trust is correct?
Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?
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