1. A decedent died on January 1 of this year. The facts concerning the decedents estate are as follows:

Estate tax payable before credits $2,765,000

Funeral and administrative expenses $ 75,000

Applicable credit amount $ 2,045,800 State death taxes paid $ 15,900

Based on the above information, the net federal estate tax payable is

a) $0 b) $593,200

c) $668,300

d) $719,200

2. Which of the following statements concerning estates is (are) correct?

I. The administration of a decedents estate should generally exist for an unlimited period of time.

II. An estate is considered a separate tax entity for federal income tax purposes.

a) I only

b) II only

c) Both I and II

d) Neither I nor II

3. Which of the following statements concerning state death taxes is (are) correct?

I.When no federal estate tax is due, no state death tax is payable.

II. In inheritance tax states, the amount of state death taxes applied to property passing to beneficiaries varies with the beneficiarys relationship to the decedent.

a) I only

b) II only

c) Both I and II

d) Neither I nor II

4. Which of the following statements concerning estate planning using life insurance is (are) correct?

I. Non-employed spouse life insurance coverage is generally most recommended when the non-employed spouse is wealthy and has a large estate.

II. Am advantage pf grandparent-grandchild trust using life insurance is that it serves to reduce the amount of insurance the grandparents adult child might own.

a) I only

b) II only

c) Both I and II

d) Neither I nor II