Estate Planning Final Exam Questions
and Answers (Rated A+)
A great deal of discretion is vested in the executor. All the following decisions or
✅
elections can be the responsibility of the executor, EXCEPT: - correct answer
Determining which heirs should receive money from the decedent's estate
answer ✅
All the following statements concerning disclaimers are correct, EXCEPT: - correct
A disclaimer of a bequest must be made within nine months of the
decedent's death, except for minors.
Which of the following methods of treating estate administration costs is (are)
acceptable to the IRS?
✅
I Deduction from the federal estate tax return
II Deduction from the estate's income tax return - correct answer Both I and II
It would be more advantageous to deduct administrative fees from the federal
estate for estate tax purposes when: - correct answer
reduce the taxable estate.
✅
income tax assessed against the deceased's estate instead of the deceased's gross
The executor wants to
By the terms of a will, "B" provided for his business interest, valued at $500,000,
to go to his son. All other property, through the residuary clause valued at
$200,000, was to go to Mrs. "B." The son made a valid disclaimer. Under these
✅
circumstances, which of the following statements is correct? - correct answer
The disclaimer has no effect on the maximum value of the federal estate tax
marital deduction.
use of a disclaimer, EXCEPT: - correct answer
spouse and children of the decedent
✅
All the following postmortem estate-planning objectives can be accomplished by
Redistributing assets among a
, Estate Planning Final Exam Questions
and Answers (Rated A+)
estate assets high, rather than low, EXCEPT: - correct answer
Sec. 303 redemption
✅
All the following are valid reasons for the deceased's executor to value some
To qualify for a
entity-purchase agreement for a partnership, EXCEPT: - correct answer ✅
All of the following are differences between a cross-purchase agreement and an
purchase agreement should include a first-offer provision, while an entity
A cross-
agreement need not.
The decedent owned stock in a closely held corporation. His adjusted gross estate
was $15 million, and his taxable estate was $14.5 million. The decedent's personal
representative would be permitted an extension of time for payment of the
was valued at which of the following amounts? - correct answer ✅
federal estate tax without special appeal to the IRS if the deceased's stock interest
III only
The incentive behind a Sec. 303 redemption is that: - correct answer
estate tax on the redeemed stock is eliminated.
✅ The
"W," a widower, age 67, gave "Z" listed securities, for which "W" paid $160,000
several years ago, but which were valued at $250,000 on the date of the gift. "W"
purposes? - correct answer ✅
paid $70,800 in gift taxes on the transfer. What is "Z's" cost basis for income tax
$160,000
correct answer ✅
Which of the following statements concerning the federal gift tax is correct? -
It is imposed on the right of the donor to make a gift.
and Answers (Rated A+)
A great deal of discretion is vested in the executor. All the following decisions or
✅
elections can be the responsibility of the executor, EXCEPT: - correct answer
Determining which heirs should receive money from the decedent's estate
answer ✅
All the following statements concerning disclaimers are correct, EXCEPT: - correct
A disclaimer of a bequest must be made within nine months of the
decedent's death, except for minors.
Which of the following methods of treating estate administration costs is (are)
acceptable to the IRS?
✅
I Deduction from the federal estate tax return
II Deduction from the estate's income tax return - correct answer Both I and II
It would be more advantageous to deduct administrative fees from the federal
estate for estate tax purposes when: - correct answer
reduce the taxable estate.
✅
income tax assessed against the deceased's estate instead of the deceased's gross
The executor wants to
By the terms of a will, "B" provided for his business interest, valued at $500,000,
to go to his son. All other property, through the residuary clause valued at
$200,000, was to go to Mrs. "B." The son made a valid disclaimer. Under these
✅
circumstances, which of the following statements is correct? - correct answer
The disclaimer has no effect on the maximum value of the federal estate tax
marital deduction.
use of a disclaimer, EXCEPT: - correct answer
spouse and children of the decedent
✅
All the following postmortem estate-planning objectives can be accomplished by
Redistributing assets among a
, Estate Planning Final Exam Questions
and Answers (Rated A+)
estate assets high, rather than low, EXCEPT: - correct answer
Sec. 303 redemption
✅
All the following are valid reasons for the deceased's executor to value some
To qualify for a
entity-purchase agreement for a partnership, EXCEPT: - correct answer ✅
All of the following are differences between a cross-purchase agreement and an
purchase agreement should include a first-offer provision, while an entity
A cross-
agreement need not.
The decedent owned stock in a closely held corporation. His adjusted gross estate
was $15 million, and his taxable estate was $14.5 million. The decedent's personal
representative would be permitted an extension of time for payment of the
was valued at which of the following amounts? - correct answer ✅
federal estate tax without special appeal to the IRS if the deceased's stock interest
III only
The incentive behind a Sec. 303 redemption is that: - correct answer
estate tax on the redeemed stock is eliminated.
✅ The
"W," a widower, age 67, gave "Z" listed securities, for which "W" paid $160,000
several years ago, but which were valued at $250,000 on the date of the gift. "W"
purposes? - correct answer ✅
paid $70,800 in gift taxes on the transfer. What is "Z's" cost basis for income tax
$160,000
correct answer ✅
Which of the following statements concerning the federal gift tax is correct? -
It is imposed on the right of the donor to make a gift.
