QUESTION: 169

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?

$5,400
$5,800
$5,900
$50,000

Answer(s): C

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QUESTION: 170

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?

Property distributed under the will before the alternate valuation date is valued at the date of death.
An annuity included in the gross estate that diminishes with the mere passage of time is includible at the date of death value.
Property sold before the alternate valuation date is valued at the alternate valuation date.
Property that has increased in value since the date of death may be valued at the date of death if the executor so elects.

Answer(s): B

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QUESTION: 171

All the following are grounds for contesting a will EXCEPT:

The testator did not have testamentary capacity.
The widow was bequeathed less than her intestate share.
The instrument is a forgery.
The testator executed a later valid will.

Answer(s): B

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QUESTION: 172

Which of the following statements concerning antenuptial agreements is (are) correct?
1. They are frequently used to protect the interests of children of former marriages.
2. They can legally deprive a surviving spouse of his or her elective share of a deceased spouse' s estate.

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

Answer(s): A

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QUESTION: 169

QUESTION: 170

QUESTION: 171

QUESTION: 172