1)

Which of the following assets do not need to be appraised when valuing the estate?

1. Bank accounts

2. Securities

3. Real estate

2 and 3 only 1 and 2 only 1, 2, and 3 1 only

2)

Ellie is executor of an estate. She realizes that she needs available cash to cover the estate's expenses, taxes, and debts. Which of the following would be a possible source of liquidity?

1. $500,000 life insurance policy with estate named as beneficiary

2. $100,000 checking account with POD to decedent's niece

3. $300,000 401(k) account with decedent's nephew named as beneficiary

1 and 2 only 3 only 1 only 1, 2, and 3

3)

Sandra received property as a gift. The donor's basis in the property was $60,000, the FMV on the date of the gift was $80,000, and the donor owned the property for three years before the gift was made. Two weeks after receiving the gift, Sandra sells the property for $82,000. What are the tax implications?

$2,000 short-term capital gain $2,000 long-term capital gain $22,000 short-term capital gain $22,000 long-term capital gain