QUESTION: 77

Which of the following types of partial interests in property may be allowed a charitable deduction for estate tax purposes?
1. A remainder interest in the donor vacation home
2. A testamentary gift of a percentage of a decedent entire interest in property held in trust

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

Answer(s): C

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QUESTION: 78

To determine whether a taxable gift has been made, the IRS focuses on all the following factors EXCEPT:

Was the value of the gift property in excess of the annual per-donee exclusion?
Was the property transferred for less than an adequate and full consideration in money or money's worth?
Was the transferred property real property or personal property?
Did the donor absolutely, irrevocably, and currently divest himself of dominion and control over the property?

Answer(s): C

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QUESTION: 79

Which of the following statements concerning the so-called "kiddie-tax" on unearned income of children under age 14 is (are) correct?
1. The rules apply to earned income of the children.
2. The rules apply to trust income received by a child under age 14 only if the trust was established by the child's parents.

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

Answer(s): B

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QUESTION: 80

Which of the following life insurance settlement options will qualify for the federal estate tax marital deduction?

1. Proceeds left to the surviving spouse under the interest option, with interest payable to the surviving spouse who has the unrestricted right to withdraw proceeds and with any proceeds not withdrawn payable equally to her children per stirpes
2. Proceeds left to the surviving spouse under an installment option, with any installments remaining at her death to be commuted and paid to her estate

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

Answer(s): A

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QUESTION: 77

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QUESTION: 80

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