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Exam 27: The Federal Gift and Estate Taxes

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Question 81

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For estate tax purposes,what is the difference between a surviving spouse's share of the community property and a dower (or courtesy)interest?

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A surviving spouse's portion of the comm...

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Question 82

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If interest is provided for in loans between related parties,there is no imputed interest,as a gift loan does not result.

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Question 83

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Calvin's will passes $800,000 of cash to his widowed sister,Muriel.The estate tax attributable to the cash is $110,000.Muriel dies seven years later,and the estate tax generated by the $800,000 is $100,000.How much of a credit for tax on prior transfers will Muriel's estate be allowed?

Some of the charitable organizations that qualify for estate tax purposes do not qualify for income tax purposes.

At the time of his death,Gene held a Roth IRA account with his wife as the designated beneficiary.The IRA is included in Gene's gross estate.

If the value of the gross estate is lower on the alternate valuation date than on the date of death,then the alternate valuation must be used.

Sometimes also known as transaction taxes,Federal gift and estate taxes are excise taxes.

Mitch pays the surgeon and the hospital for his aunt's gall bladder operation.The transfer is not subject to the gift tax.

Harry and Brenda are husband and wife.Using his funds,Harry purchases real estate which he lists as: "Harry and Brenda,tenants by the entirety with right of survivorship." If Harry dies first,all of the real estate will be included in his gross estate.

At the time of his death,Lance held a life estate in the LM Trust.Under which of the following circumstances will the LM Trust be included in his gross estate?

Pauline sells antique furniture to her daughter,Nicole,for $10,000.If the furniture is really worth $100,000,Pauline has made a gift to Nicole of $100,000.

Doyle died in 2000 and by will created a trust with the following provisions: "life estate to my wife,Grace,remainder upon her death to our children." Grace dies in 2011.Is the trust Doyle created included in Grace's gross estate? Explain.

A husband and wife make a gift of their vacation home to their adult children.If the property is owned jointly by them,the gift-splitting election need not be made.

Sam purchases a U.S.savings bond which he registers as follows: "Sam,payable to Don upon Sam's death." A gift occurs when Sam dies.

The current top Federal transfer tax rate of 35% is the highest that the rate ever has been.

Some states impose inheritance taxes,but the Federal tax system does not.

Under certain circumstances,the gift-splitting election can be made even though the electing spouses are no longer married to each other.

Mark dies on March 3,2011.Which,if any,of the following items is not included in his gross estate?

Concerning the formula for the Federal estate tax:

A surviving spouse's share of the community property is not included in the deceased spouse's gross estate.