American College HS-330 dumps - 100% Pass Guarantee!

Which of the following statements concerning charitable guaranteed annuity interests is (are) correct?

1.

To qualify for an estate tax charitable deduction, guaranteed annuity interests must be made in trust.

2.

These interests refer to the charity right to receive a determinable income amount at least annually for a specific term or life (lives) or one or more noncharitable beneficiaries.

A. Both 1 and 2

B. Neither 1 nor 2

C. 2 only

D. 1 only

All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:

A. In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.

B. The deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.

C. Jointly held property between spouses does not pass through the probate estate of the first spouse to die.

D. All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.

A married man died intestate. In addition to his wife, he was survived by two minor children and both his parents. Which of the following statements describes the typical intestate distribution in this situation?

A. The widow receives at least one-third of the estate and the children divide the remainder of the estate equally.

B. The widow receives one-third of the estate and the remainder is divided equally among the two children and the parents of the decedent.

C. The widow receives half the estate and the remaining half is divided equally between the decedent's parents.

D. The widow receives the entire probate estate as trustee for the benefit of the two minor children.

A man is planning to establish and fund an irrevocable trust for the benefit of his two sons, ages 19 and 22, and plans to give the trustee power to sprinkle trust income. From the standpoint of providing federal income, gift, and estate tax savings, which of the following would be a suitable trustee?

1.

The grantor of the trust

2.

The grantor's 22-year-old son

A. 2 only

B. Neither 1 nor 2

C. 1 only

D. Both 1 and 2

Mr. Allen died early this year survived by his spouse Mrs. Allen. Among the items of family property are:

1.A $300,000 life insurance policy on Mr. Allen's life with Mrs. Allen designated as beneficiary. Mrs. Allen has been the owner of the policy ever since it was issued 4 years ago. 2.The family residence with a fair market value of $400,000. Mr. and Mrs. Allen own the residence jointly with the right of survivorship even though Mr. Allen purchased it with his separate funds.

3.A $40,000 bank account. Mr. and Mrs. Allen own the account jointly with the right of survivorship even though Mrs. Allen made all the deposits.

What amount of the family property will be included in Mr. Allen's gross estate for federal estate tax purposes?

A. $500,000

B. $520,000

C. $220,000

D. $400,000