1. Which of the following statements concerning federal gift and estate taxes is (are) correct?

I. The donors gross estate includes the amount of any gift taxes paid by the donor on gifts made within 3 years of death.

II. Gifts made within 3 years of death are brought back into the donors gross estate.

a) I only

b) II only

c) Both I and II

d) Neither I nor II

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

I. The federal state death tax deduction is allowed only if a federal estate tax Form 706 return must be filed.

II. State estate and inheritance taxes are generally imposed at the same rate regardless of the relationship of the deceased to the beneficiary.

a) I only

b) II only

c) Both I and II

d) Neither I nor II

3. Important factors in assessing liquidity needs in estate planning include which of the following?

I. the amount and terms of debt of the estate owner

II. the marital status of the testator

a) I only

b) II only

c) Both I and II

d) Neither I nor II

4. Non-tax benefits of lifetime gifts include which of the following?

I. obtaining privacy that is not possible when testamentary transfers are made

II. reducing probate and administrative costs

a) I only

b) II only

c) Both I and II

d) Neither I nor II