Deck 11: Tax Considerations in the Administration of Estates

Question 1

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
The United States Individual Income Tax Return

Answer 1

F

Question 2

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
Tax levied on an estate for the transfer of property upon death

Answer 2

A

Question 3

The federal unified gift and estate tax rate is a progressive and cumulative tax.

Answer 3

True

Question 4

Any state in which a decedent held property may impose estate tax on the decedent's estate.

Question 5

The gross estate is the taxable estate.

Question 6

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
A law that replaced the unified credit with an applicable credit amount

Question 7

After a decedent's death, his/her estate is a new legal entity.

Question 8

Every transferor is allowed a lifetime exemption from the generation-skipping transfer tax.

Question 9

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
Tax levied on a donee who transfers property during life

Question 10

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
The Application for Extension of Time to File a Return and/or Pay United States Estate Taxes

Question 11

The personal representative is generally responsible for paying all taxes out of estate assets.

Question 12

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
The United States Estate Tax Return

Question 13

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
A law that allows any kind of real or personal property to be transferred to a custodianship as a gift to a minor

Question 14

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
The United States Gift Tax Return

Question 15

Death tax payments are assessed against all income brackets, from the poor to the wealthy.

Question 16

Estate tax is a type of death tax.

Question 17

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
The Application for Automatic Extension of Time to File a United States Individual Income Tax
Return

Question 18

MATCHING:
a.estate tax
b.income tax
c.gift tax
d.1997 Taxpayer Relief Act
e.Uniform Transfers to Minors Act
f.Form 1040
g.Form 4868
h.Form 709
i.Form 706
j.Form 4768
Tax levied on wages, rents, pensions, annuities, royalties, alimony, and dividends

Question 19

All states have adopted the Uniform Transfers to Minors Act.

Question 20

Trust income is not subject to federal income tax.

Question 21

A testator's estate is entitled to the marital deduction if:

A)There is a surviving spouse and the decedent leaves all or a portion of the estate to him/her.
B)There is a surviving heir other than the spouse, and the decedent leaves all or a portion of the estate to the surviving heir.
C)There is no surviving spouse, but had there been, the decedent would have left all or a portion of the estate to him/her.
D)The marital deduction is not allowed because it has been repealed.

Question 22

Bob and Mary have a son, Steven, and a granddaughter, Kelly.If Bob made a transfer of interest in property to Kelly, who would be the skip person?

A)Mary
B)Bob
C)Kelly
D)Steven

Question 23

Which is an example of a Qualified Terminable Interest Property (QTIP) property?

A)A life insurance policy with a one-time lump sum payment to the surviving spouse
B)An automobile
C)A homestead
D)A trust with a life interest to the surviving spouse and remainder to the children

Question 24

Which state has a state income tax?

A)New York
B)Nevada
C)Washington
D)Florida

Question 25

Which of the following states imposes an inheritance tax on successors?

A)Wyoming
B)Minnesota
C)South Carolina
D)Kentucky

Question 26

Which CANNOT be subtracted from the gross estate to determine the taxable estate?

A)Certain expenses, liens, and encumbrances
B)Charitable deductions
C)The lessening of the value of estate assets
D)Marital deduction

Question 27

Which does the personal representative NOT have to file?

A)Federal Individual Income Tax Return
B)State Estate Tax Return
C)Federal Sales Tax Return
D)State Individual Income Tax Return

Question 28

A joint federal tax return can be filed for the decedent ONLY if:

A)The surviving spouse agrees to file a joint return.
B)The surviving spouse remarried before the close of the year.
C)The surviving spouse lives in a different state.
D)The decedent was employed prior to his/her death.

Question 29

Which does NOT generally have to be filed by April 15?

A)Federal Income Tax Return
B)Federal Estate Tax Return
C)Federal Gift Tax Return
D)Most state income tax returns

Question 30

Which is NOT a reason that many people die without a valid will?

A)Inheritance tax
B)Estate tax
C)Gift tax
D)Income tax