1. Which of the following statements concerning tax apportionment issues in a will is (are) correct?

I. Most state statures provide for equitable apportionment of taxes, whereby each bequest bears the amount of tax it generates.

II. Planners should make certain that clients carefully consider the sources from which tax payments will be made at death.

a) I only

b) II only

c) Both I and II

d) Neither I nor II

2. Which of the following statements concerning the federal estate tax marital deductions is (are) correct?

I. Property passing outside the probate estate cannot qualify for the marital deduction.

II. The marital deduction is limited to the greater of one-half of the adjusted gross estate of $2 million.

a) I only

b) II only

c) Both I and II

d) Neither I nor II

3. Which of the following powers held by the income beneficiary is (are) considered to be a general power of appointment, thus causing all or a portion of the trust corpus to be includible in the beneficiarys gross estate for federal estate tax purposes?

I. The power to withdraw the greater of $5,000 or 5 percent of the trust corpus in any one year.

II. The power to direct the trustee to pay the beneficiarys personal debts

a) I only

b) II only

c) Both I and II

d) Neither I nor II

4. Which of the following statements concerning valuation of assets for federal estate tax purposes is (are) correct?

I. The date of valuation of an estate is the date of the decedents death or, if applicable, the alternate valuation date, which is 6 months later.

II. All estate assets are valued at fair market value, which is the value placed on the estate assets by the executor with the advice of the attorney for the estate.

a) I only

b) II only

c) Both I and II

d) Neither I nor II