All the following will be brought back into the donor's gross estate for federal estate tax purposes EXCEPT

the gift taxes paid last year on a gratuitous transfer of real property
a gratuitous transfer of real property with a reserved right to use and enjoy it for life
an outright, gratuitous transfer of real property in contemplation of death
a gratuitous transfer of real property to a revocable intervivos trust

Answer(s): C

All the following statements concerning the ownership of real property as joint tenants with right of survivorship are correct EXCEPT:

If the joint tenants are two brothers and each contributed one half the property's purchase price, only one half the property's value will be in the estate of the first brother to die if his executor proves that the other brother contributed half of the purchase price.
If the joint tenants are husband and wife, because this is a qualified joint interest, one half the value of the property will be in the estate of the first spouse to die regardless of which spouse contributed to the purchase price.
If the joint tenants are brother and sister, no portion of the value of the property will be in the sister's estate if she dies first provided her executor proves that the brother contributed all the funds.
If three sisters inherited property as joint tenants with right of survivorship, the entire value of the property will be in the estate of the first sister to die.

Answer(s): D

Which of the following statements concerning filing the federal estate tax return is correct?

A one-year extension for filing the estate tax return is granted when the estate contains a closely held business interest.
An automatic two-year extension for filing the estate tax return is granted when the decedent dies overseas.
The estate tax return must be filed within 9 months of death unless an extension is granted by the IRS.
For persons dying under current law, an estate tax return must be filed for all U.S. citizen decedents.

Answer(s): C

All the following statements concerning an entity-purchase buy-sell agreement for a partnership are correct EXCEPT:

Both the partners and the partnership are parties to the agreement that provides for business continuation.
The partnership makes payments to the decedent-partner's estate to liquidate the partnership interest held by the estate.
The partnership, in effect, liquidates the interest held by the decedent-partner's estate.
It is the surviving partners who purchase the decedent's business interest so that the partnership can afford to pay the decedent's estate.

Answer(s): D

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