QUESTION: 1

Many trust instruments provide for the removal of the original trustee. Valid reasons for removing the original trustee include which of the following?

1. A shift in trust situs is desirable because of changes in law.
2. The beneficiary has moved his or her residence to a distant state.

Neither 1 nor 2
1 only
Both 1 and 2
2 only

Answer(s): C

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QUESTION: 2

In which of the following situations will the grantor be taxed on income from trust property.

1. The grantor of a trust gives one of the trust beneficiaries the right to add or delete beneficiaries.
2. An adverse party to the grantor holds the power to determine the timing of trust distributions to the beneficiaries.

1 only
Both 1 and 2
2 only
Neither 1 nor 2

Answer(s): D

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QUESTION: 3

The following are facts concerning a decedent's estate:

* Taxable estate $1,800,000
* Pre-1977 taxable gifts 100,000
* Post-1976 adjusted taxable gifts 150,000
* Post-1976 gifts made to a qualified charity 200,000

The tentative tax base of this estate is

$1,800,000
$1,950,000
$1,650,000
$2,150,000

Answer(s): B

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QUESTION: 4

Items that are deductions from a decedent's gross estate in determining his adjusted gross estate include which of the following?

1. Foreign death taxes
2. State death taxes

Neither 1 nor 2
Both 1 and 2
1 only
2 only

Answer(s): A

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QUESTION: 1

QUESTION: 2

QUESTION: 3

QUESTION: 4