Cannon Trust School II Exam Questions w ith 100%
Verified Correct Answ ers
1. 1. In 2023, the annual gift tax exclusion is
A. $17,000 per done for gifts of present interest.
B. $34,000 per done for gifts of present interest.
C. $15,000 per done for all gifts, present or future interest.
D. $5,000 or 5% of the corpus, whichever is greater.
Answer A. $17,000 per done for gifts of present interest.
2. 2. In 2019, having made no prior gifts, Don began making annual gifts to his son
of $250,000. What is the first tax year for which he will have to file a gift tax return?
A. 2019
B. 2020
C. 2021
D. 2022
Answer A. 2019
3. 3. Which of the following is TRUE of lifetime taxable gifts?
A. The unified credit may not be used in whole or in part.
B. Taxes due as a result of the gift are the responsibility of the done.
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, C. $30,000 annual present interest exclusion per done is available.
D.The unified credit may be used to the extent available to eliminate or reduce the tax
due.
Answer D. The unified credit may be used to the extent available to eliminate or reduce the tax due.
4. 4. Gifts to which of the following trusts will NOT qualify as a gift of present
interest for the annual exclusion?
A. Irrevocable trusts with Crummy provisions
B. 2503(c) trusts for minors
C. Simple trusts
D. Complex trusts
Answer D. Complex trusts
5. 5. Since the Gift and Estate Tax rates are unified which of the following best
describes the relative advantages of gift versus estate taxes?
A. There are no tax advantages to making lifetime gifts.
B. There are tax advantages to making lifetime gifts.
C. There are tax advantages to making lifetime gifts only within three years of death
of the donor.
D.There are tax advantages to making lifetime gifts only when made more than three
years before death of the donor.
Answer B. There are tax advantages to making lifetime gifts.
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Verified Correct Answ ers
1. 1. In 2023, the annual gift tax exclusion is
A. $17,000 per done for gifts of present interest.
B. $34,000 per done for gifts of present interest.
C. $15,000 per done for all gifts, present or future interest.
D. $5,000 or 5% of the corpus, whichever is greater.
Answer A. $17,000 per done for gifts of present interest.
2. 2. In 2019, having made no prior gifts, Don began making annual gifts to his son
of $250,000. What is the first tax year for which he will have to file a gift tax return?
A. 2019
B. 2020
C. 2021
D. 2022
Answer A. 2019
3. 3. Which of the following is TRUE of lifetime taxable gifts?
A. The unified credit may not be used in whole or in part.
B. Taxes due as a result of the gift are the responsibility of the done.
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, C. $30,000 annual present interest exclusion per done is available.
D.The unified credit may be used to the extent available to eliminate or reduce the tax
due.
Answer D. The unified credit may be used to the extent available to eliminate or reduce the tax due.
4. 4. Gifts to which of the following trusts will NOT qualify as a gift of present
interest for the annual exclusion?
A. Irrevocable trusts with Crummy provisions
B. 2503(c) trusts for minors
C. Simple trusts
D. Complex trusts
Answer D. Complex trusts
5. 5. Since the Gift and Estate Tax rates are unified which of the following best
describes the relative advantages of gift versus estate taxes?
A. There are no tax advantages to making lifetime gifts.
B. There are tax advantages to making lifetime gifts.
C. There are tax advantages to making lifetime gifts only within three years of death
of the donor.
D.There are tax advantages to making lifetime gifts only when made more than three
years before death of the donor.
Answer B. There are tax advantages to making lifetime gifts.
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