CANNON TRUST FUNDAMENTALS
EXAM QUESTIONS AND ANSWERS
Does an Irrevocable Trust move out of the gross estate of the Grantor?
Yes
What is the current Basic Exclusion Amount (BEA)?
$12.06 million
Gross estate includes... (3 things)
Everything that the decedent owned, controlled, retained
Joint interests owned by spouses (only) are presumed to be what percentage
during the first estate to dies gross estate?
50%/50% assumption
All other joint interests that do not include spouses are presumed to be what
percentage during the first estate to dies gross estate?
,100% includable in the first estate
What is the step up in basis for common law states with tenants in common?
1/2 step
What is the step up in basis for community property states?
1 full step
Which two types of gifts/deductions are unlimited?
Charitable and marital
When must the PR/Trustee elect for an alternate valuation date?
6 months after DOD (or before)
DSUE = ?
Deceased Spouse Unused Exclusion
, An estate tax return form (Form 706) must be filed...
within 9 months of DOD
What does filing an estate tax return (within 9 months) of the DOD of the first
spouse?
Allows portability of DSUE to SS
Gift splits apply to...?
Spouses only
applicable exclusion amount (AEA)
BEA + DSUE = AEA of surviving spouse
*could be up to 24.12 million right now
Form 709 must be filed when...
Anyone makes a gift over $16K that year
*File on April 15th with your Form 1040
EXAM QUESTIONS AND ANSWERS
Does an Irrevocable Trust move out of the gross estate of the Grantor?
Yes
What is the current Basic Exclusion Amount (BEA)?
$12.06 million
Gross estate includes... (3 things)
Everything that the decedent owned, controlled, retained
Joint interests owned by spouses (only) are presumed to be what percentage
during the first estate to dies gross estate?
50%/50% assumption
All other joint interests that do not include spouses are presumed to be what
percentage during the first estate to dies gross estate?
,100% includable in the first estate
What is the step up in basis for common law states with tenants in common?
1/2 step
What is the step up in basis for community property states?
1 full step
Which two types of gifts/deductions are unlimited?
Charitable and marital
When must the PR/Trustee elect for an alternate valuation date?
6 months after DOD (or before)
DSUE = ?
Deceased Spouse Unused Exclusion
, An estate tax return form (Form 706) must be filed...
within 9 months of DOD
What does filing an estate tax return (within 9 months) of the DOD of the first
spouse?
Allows portability of DSUE to SS
Gift splits apply to...?
Spouses only
applicable exclusion amount (AEA)
BEA + DSUE = AEA of surviving spouse
*could be up to 24.12 million right now
Form 709 must be filed when...
Anyone makes a gift over $16K that year
*File on April 15th with your Form 1040
