Question 1

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Prior to death filed for a refund of overpaid income taxes.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 2

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-Transfer by death of depreciable property.

Accepted Answer

Depreciation recapture potential is eliminated upon the transfer of depreciable property by death, as the property receives a step-up (or step-down) in basis to its fair market value at the date of the decedent's death, thereby eliminating the potential for depreciation recapture that would have applied if the decedent had sold the property during their lifetime.

Question 3

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-No step-up in basis at death.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 4

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Purchased a straight life annuity from an insurance company.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 5

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-Reasonable cause will justify election.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 6

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Made life insurance payable to children.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 7

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-Can postpone the payment of any estate tax for 5 years from due date of the return.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 8

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Brother purchased land listing ownership with decedent as tenants in common.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 9

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-Doubles the number of annual exclusions available.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 10

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Paid medical expenses prior to death.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 11

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-Eliminates preferred stock from donor's gross estate.

Accepted Answer

The statements provided do not accurately describe any of the options listed. Eliminating preferred stock from a donor's gross estate is not directly related to any of the specific tax provisions or elections mentioned (A through G).

Question 12

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-After death, vacation home is destroyed by fire.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 13

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Spouse purchased residence listing ownership as tenants by the entirety.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 14

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-Eliminates common stock from donor's gross estate.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 15

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Purchased real estate designating herself and her children as equal tenants in common.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 16

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Created a living trust.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 17

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
a. Revocable trusts
b. Income in respect of a decedent (IRD)
c. Conservation easement
d. Discretionary extension of time to pay estate tax (§ 6161)
e. Estate freeze-corporations
f. Extension of time involving interest in closely held business (§ 6166)
g. Special use valuation as to certain realty (§ 2032A)
h. Depreciation recapture potential eliminated
i. Alternate valuation date (§ 2032)
j. Election to split gifts (§ 2513)
k. No correct choice is given
-Living trusts.

Accepted Answer

The answer of Match each statement with the correct choice....

Question 18

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Created during lifetime an irrevocable trust in which a life estate is retained with remainder interest passing to the children.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 19

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Mother purchases land listing ownership with decedent as joint tenants.

Accepted Answer

The answer of Match each statement with a correct choice....

Question 20

Match each statement with a correct choice. Choices may be used more than once.
a. Increases the probate estate
b. Decreases the probate estate
c. Has no effect on the probate estate
-Purchased insurance policy that pays all funeral expenses.

Accepted Answer

The answer of Match each statement with a correct choice....

Quiz 19: Family Tax Planning

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Prior to death filed for a refund of overpaid income taxes.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Purchased a straight life annuity from an insurance company.

Match each statement with the correct choice. Some choices may be used more than once or not used at all. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Made life insurance payable to children.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Brother purchased land listing ownership with decedent as tenants in common.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Paid medical expenses prior to death.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -After death, vacation home is destroyed by fire.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Spouse purchased residence listing ownership as tenants by the entirety.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Purchased real estate designating herself and her children as equal tenants in common.

Match each statement with the correct choice. Some choices may be used more than once or not used at all. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Created a living trust.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Mother purchases land listing ownership with decedent as joint tenants.

Match each statement with a correct choice. Choices may be used more than once. a. Increases the probate estate b. Decreases the probate estate c. Has no effect on the probate estate -Purchased insurance policy that pays all funeral expenses.