Question
1.Jointly owned property with rights of survivorship differ from a tenancy by the entirety with regard to the following A sale of the property during
1.Jointly owned property with rights of survivorship differ from a tenancy by the entirety with regard to the following A sale of the property during lifetime A gift to a third person A transfer on the death of one of the tenants a) Joint tenants require the consent of the cotenant to transfer their interest and tenants by the entirety can sell their interests during their lifetime to a third party. b) Joint tenants can sell their interests during their lifetime to a third party, tenants by the entirety require the consent of the cotenant to transfer their interest. Property transfers by right of survivorship to the survivor at the death of one of the tenants in both cases. c) Either joint tenants or tenants by the entirety can transfer their interest during their lifetime without consent. d) Both joint tenants and tenants by the entirety require the consent of the cotenant to transfer their interest. |
2. Which of the following provisions will result in the inclusion of an irrevocable life insurance trust in the insureds gross estate? I. the direction for the trustee to pay the insureds debts if all other sources of payment are exhausted II. the trust beneficiaries power to withdraw contributions to the trust A.I only B.II only C.Both I and II D.Neither I nor II |
3.On April 1, 2005, a mother gave her daughter a $150,000 straight (ordinary) life insurance policy on her husbands life. Premiums are paid annually. The pertinent facts about the policy are as follows: Date of Issue: July 1, 1992 Premium paid on July 1, 2004 $ 2,200 Terminal reserve on July 1, 2004 $14,000 Terminal reserve on July 1, 2005 $18,000 What is the value of the policy for federal gift tax purposes? a) $17,550 b) $15,500 c) $14,550 d) $150,000 |
4. A widower made the following cash gifts in one tax year: Donee Amount of Gift A qualified charity 30,000 His best friend 50,000 His brother 10,000 His nephew 15,000 His daughter 25,000 The widowers total amount of taxable gifts made was: a) $48,000 b) $61,000 c) $72,000 d) $130,000 |
5. The principal duties common to all fiduciary relationship are: a) Owe an allegiance to the grantor of the trust, invest assets wisely and dont do anything foolish. b) Maximize growth of assets, be loyal to beneficiaries and be impartial towards beneficiaries. c) Be loyal to the beneficiaries; preserve and protect property to make it productive; be impartial toward beneficiaries. d) All of the above |
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