14.Chad and Ross (both males) have been involved in an long-term relationship for the past 25 years.

Chads family is quite wealthy and has provided Chad with every extra in life. Unfortunately, Chads

family is also very conservative, and they do not approve of Chads relationship with Ross. Chad was

diagnosed with cancer last year and given only 12-15 months to live. Chad plans to leave the

substantial wealth he has inherited over the years to Ross. Chads mother has said that she will try to

keep any assets from Ross. Which of the following would be least likely meet Chads objectives?

a. A well-drafted will leaving everything to Ross with a no-contest clause.

b. A revocable living trust created and funded now with Ross as the beneficiary at Chads death.

c. An irrevocable trust created and funded with Chad as the income beneficiary and Ross as the

remainder beneficiary.

d. Retitling all assets as JTWROS

15.True or False: Transfers that include a revocable beneficiary designation or a transfer to a revocable

trust are incomplete transfers, which are not gifts for gift tax purposes.

16.Donald has created a trust for the benefit of his three nephews, Huey, Dewey, and Louie, who are all

minors. Donald plans on making annual contributions to the trust. Donald would like at least some of

his annual contributions to the trust to qualify for the annual exclusion. What would be the best way

to accomplish this goal?

a. Donald should make sure that he does not contribute more than $15,000 for each nephew, or

$45,000 in total, each year.

b. Donald should give his nephews an unlimited ability to remove funds from the trust.

c. Donald should give his nephews the right to remove some or all of the annual contribution from

the trust for a limited period of time.

d. Donalds annual contributions to the trust will not qualify for the annual exclusion under any

circumstances.

17.Which of the following transfers requires a gift tax return to be filed?

a. Joe gifts $11,000 to his daughter Janisa.

b. Elroy gifts $50,000 to his wife, Elizabeth, who is a U.S. citizen.

c. Adam gives his favorite employee, Aaron, a new car at Aaron's retirement worth $20,000.

d. Pete transfers $20,000 to his friend Patricia. Pete and Patricia were divorced five years ago

18.Which of the following transfers would not be considered a qualified transfer?

a. Piper pays $35,000 to Harvard University for her nieces tuition.

b. Piper pays $50,000 to her friend Paige, who uses the money to pay for her medical expenses.

c. Piper pays $10,000 to Children's Hospital for her granddaughters medical expenses.

d. Piper pays $12,000 to Prestigious Preparatory School for her nephews tuition.

19. True or False: An Annuity is a product that guarantees a yearly payout of income.

20.True or False: An opportunity zone allows individuals to delay paying ordinary income tax.

21.True or False: Giving away property that has decreased in value is a good strategy for both the giver

and the recipient.

22.True or False: The estate tax exemption is the value of property that a person can give away at death without incurring estate tax.