Which of the following statements concerning the valuation of intangible personal property in the gross estate of a decedent is correct?

When a minority stockholder in a closely held corporation dies, his stock is valued on the basis of the "blockage" rule.
Certain U.S. Treasury bonds that are used to pay federal estate taxes at par are valued at their market price on the date of death of the owner.
Valuing closely held stock requires the consideration of several factors outlined by IRS rulings.
If there were no trades of a listed common stock on the date of the stockholder's death, the stock's value is based on its average daily price for the previous month prior to the shareholder's death.

Answer(s): C

All the following statements concerning a complex trust are correct EXCEPT:

The trustee may make distributions of principal to trust beneficiaries.
Beneficiaries must receive all distributable net income in the year received by the trust.
Beneficiaries are taxed on their share of distributable net income when received by them.
A complex trust may make gifts to charity.

Answer(s): B

All the following statements concerning wills are correct EXCEPT:

A testator may lose the capacity to revoke a will prior to death.
A codicil is a valid modification of a will.
Once a person is named as an executor in a will, he or she is required to serve.
In most states a surviving spouse can elect against a will that completely disinherits him or her.

Answer(s): C

Which of the following statements concerning charitable remainder unitrusts is correct?

A fixed percentage of not less than 10 percent of the net fair market value of the trust assets is paid to the noncharitable beneficiaries.
The remainder interest is paid to the qualified charity after a term of years not greater than 15 years.
The net fair market value of the trust assets are revalued annually.
No further contributions may be made to aunitrust after the initial payment.

Answer(s): C

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