7.The basis of inherited property is

a. the fair market value minus the cost of the property.

b. the cost of the property to the donor.

c. the fair market value reported on the estate tax return.

d. the fair market value plus the cost of the property.

e. None of these choices are correct.

14.Estate planning usually occurs during the last ten years of a person's life.

a. Trueb. False

19.In most cases, charitable contributions

a. should not be made.

b. should be made during life.

c. produce no income tax benefit.

d. should be made after death.

e. are subject to gift taxes.

20.A testator can revoke a will in which of the following ways?

a. Making a codicil that revokes prior wills

b. Making a later will that revokes prior wills

c. Burning the will

d. Making a later will that is inconsistent with a prior will

e. All of these choices are correct

22.If a person without relatives dies with a valid will, his or her property will go to the state.

a. Trueb. False

30.Trustees receive the benefits from a trust.

a. Trueb. False

34.If there is no estate plan in place, state and federal laws control the disposition of assets.

a. Trueb. False

e. are subject to gift taxes.