1. AS@, a widower, age 65, makes the following gifts: (a) $82,000 of listed securities to his son, (b) $17,000 cash to his daughter, (c) $6,000 to his granddaughter, and (d) $14,000 to his church. What is the amount of AS=s@ taxable gifts?

A. $63,000

B. $71,000

C. $77,000

D. $83,000

2. In Question 31, assume that AS@ has remarried when he makes the four gifts. What would be the value of the taxable gifts made by AS@ and his wife, if she joins in the gifts?

A. Zero

B. $54,000

C. $71,000

D. $96,000

3. For which of the following gratuitous transfers must a gift tax return be filed?

A. A contribution to a political organization

B. Payment to another person=s legal fees

C. Payment of another person=s hospital bills

D. Payment of educational tuition for another person

4. Richard Poore gave gifts of $30,000 each to his church, his wife, his son, and his mother. Poore also created a trust for his wife with a life income interest valued at $175,000, and his daughter was to receive the remainder interest valued at $7,000. What is the total amount of the annual exclusions used by Richard Poore?

A. $11,000

B. $33,000

C. $56,000

D. $44,000

5. All the following items will be included in AM=s@ gross estate at his death EXCEPT:

A. Municipal bonds exempt from federal income taxes.

B. One-half the value of the residence he owns in joint tenancy with Mrs. AM@.

C. The right to the income for his lifetime derived from a Kansas wheat farm willed to AM@ by his father.

D. A general power of appointment over trust property.

E. A $100,000 life insurance policy owned by AM@ and payable to his wife under a lump sum settlement arrangement.

6. Knowing death was imminent, AX@, a widower, gave $5,000 to each of his four children only a few months before his death. What dollar value would be included in AX=s@ gross estate for these gifts made in contemplation of death?

A. Zero

B. $12,000

C. $16,000

D. $20,000

7. AH@ gave $30,000 cash to his son two years ago, a $50,000 life insurance policy to his sister one year ago, and $6,000 cash to his wife five years ago. He made no other lifetime gifts. AH@ died yesterday. Under these circumstances, which of the following would be included in AH=s@ gross estate?

A. $10,000 of the gift to AH=s@ son

B. The $30,000 gift to his son

C. The life insurance gift to his sister

D. The $30,000 gift to his son and the life insurance gift to his sister

8. AX@, a widower, made a cash gift to his son of $1,000,000 two years before he died and paid a $345,000 gift tax. What is included in his gross estate?

A. $172,500

B. $345,000

C. $1,000,000

D. $1,345,000

9. By the terms of his Will, AK@ gave his wife the right to live in their home until her death. AK=s@ daughter by a former marriage was to have the property upon Mrs. AK=s@ death. Under these circumstances, which of the following statements is correct?

A. The property would be included in Mrs. AK=s@ gross estate.

B. The property will be excluded from AK=s@ gross estate

C. Mrs. AK@ has a contingency interest in the property.

D. Mrs. AK=s@ interest terminates at her death.

10. AR@, age 70, placed $100,000 of securities in an irrevocable trust to provide a lifetime income for his sister, age 60. For purely sentimental reasons, AR@ provided that the securities were to be returned to him if his sister failed to survive him. As expected, AR@ died several years before his sister. Why might the IRS include the value of the securities in AR=s@ gross estate?

A. Because AR@ lived beyond his life expectancy.

B. Because AR=s@ reversionary interest is valued at greater than 5%.

C. Because of the present value of the income in respect of a decedent.

D. Because AR@ had the right to specify who will possess or enjoy the income from the securities.