1. Which of the following property interests does not qualify for a marital deduction from the deceased wife's adjusted gross estate?

A.A terminable interest trust that paid the husband all income annually for life. The executor elected to qualify the trust for the marital deduction on the wife's estate tax return.

B.The lifetime income interest the husband received from a testamentary trust with a power to invade the trust corpus.

C.Property the husband received through the state's elective share statute.

D.A vacation home the husband received from his wife that allows him to use the property for life. At his death, the property will pass to his wife's son from a previous marriage, as she directed.

2. Skip was married to Libby when he died three months ago. Which of the following property interests qualifies for the marital deduction in his estate?

A.The value of Skip's revocable trust that named Libby as the trust beneficiary after Skip's death.

B.Skip was the owner of a whole-life insurance policy on Libby's life. The life insurance policy named Libby as the contingent owner upon Skip's death.

C.A painting that Skip and his former wife, Olivia, purchased on their honeymoon that Skip bequeathed to Olivia.

D.Skip was the recipient of a life estate that his father gave him in the family cottage in Maine. The residuary clause in Skip's will left the rest and residue of his estate to his wife, Libby.

3. Which of the following statements regarding a QDOT is incorrect?

A.A U.S. citizen spouse cannot gift property to a non-citizen spouse unless a QDOT is established before the gift is made.

B.The estate tax attributed to the deceased spouse's property can be paid by withholding a portion of the tax from lifetime distributions made to the noncitizen spouse from the QDOT.

C.The non-citizen spouse must receive all income annually for life.

D.The non-citizen spouse can establish a QDOT if the citizen spouse did not establish the trust prior to his death.

4. All of the following statements regarding a qualified disclaimer are correct except:

A.For federal tax purposes, the disclaimant is regarded as never having received the property and is treated as if he predeceased the transferor.

B.Disclaimed property that is transferred to a person who is two or more generations below the decedent may be subject to a GST tax, depending on the amount of GST tax exemption allocated to the transfer.

C.A Disclaimer Trust will bypass inclusion in the surviving spouse's taxable estate.

D.Property that is disclaimed by the surviving spouse receives a marital deduction in the decedent spouse's estate.

5. Louise died and left her entire estate of $20 million to her husband, Dirk. Dirk disclaimed $11,180,000 of her property that was directed into a Disclaimer Trust established in Louise's will. Dirk will receive all the income from this trust for life and the corpus will pass to their son at Dirk's death. Based on this information, which of the following statements are correct?

A.The property in the Disclaimer Trust will not be taxed in Dirk's estate at death.

B.Dirk must disclaim the entire $20 million of Louise's property for the qualified disclaimer to be effective.

C.A marital deduction for the $11,180,000 transferred into the trust is not available to Louise's estate.

D.Louise's executor must qualify the property for the qualified disclaimer technique on IRS Form 706.