6. S1 died in March of 2005 and S2 died in April of 2007. When S1 died they owned property with a net value of $11,580,000 of which S1's separate property was worth $5,980,000, their community property was worth $2,600,000 and S2's was worth $3,000,000. They had an AsuperB Trust plan. Which of the following comes closest to the QTIP fraction (expressed as a percent) that would postpone all estate taxes until after S2's death?

80%

20%

100%

60%

40%

7. Sheila made a death bed transfer to her son, giving him a check for $15,000. He cashed the check two days after her death. The check was honored by Sheila's bank. The full $15,000 is likely to be included in her estate because:

it was a revocable transfer.

it was over $10,000.

Sheila had a retained life estate.

the bank illegally cashed the check after the donor died.

all death bed transfers are drawn back.

11. When Rachael was 75 years old, she established a 5 year QPRT using her $1,000,000 home which had a fair rental value of $70,000 per year. The 7520 rate was 10%. She retained a reversion right in the event she did not live out the term of the trust. When the trust terminated the home was worth $1,250,000. She died on her 81st birthday, at which time the home was valued at $1,300,000.

What was the value of the gift?

$483,638

$620,921

$572,218

$516,362

12. At the death of the holder of an installment note with gain recognized as principal is collected, a step-up in basis means that there is no gain when the note is paid off.

True

False

13. Life insurance proceeds are usually exempt from

neither income tax nor gift tax

income tax only

both income tax and gift tax

gift tax only