Argo and his wife, who had made no previous gifts, gifted $125,000 in total present interest gifts to each of 6 grandchildren in separate accounts in the current year. They allocated their GST exemption to the accounts. How much GST tax do they each owe?

a. $0.

b. $156,000 after the annual exclusions.

c. $232,800 (40% of $582,000).

d. $300,000 (40% of $750,000).

Which of the following are characteristics of a qualified disclaimer?

It may not direct the bequest to another person selected by the disclaimant.

It must be received by the executor of the estate within 9 months of the death of the decedent.

It must be written and irrevocable.

The disclaimant may disclaim a part of an asset.

a.

1 and 2.

b.

1, 2 and 3.

c.

1, 3 and 4.

d.

1, 2, 3 and 4.

Which of the following statements is incorrect?

a.

When a decedent's taxable estate is less than the applicable estate tax credit equivalency because of the overuse of the marital deduction, the estate is said to be overqualified.

b.

When too few assets pass to a decedent's surviving spouse, and as such the decedent's taxable estate is greater than the applicable estate tax credit equivalency, the decedent's estate is said to be underqualified.

c.

An ABC Trust arrangement utilizes a General Power of Appointment Trust, a QTIP Trust. and a Bypass Trust to maximize the use of a decedent's applicable estate tax credit.

d.

The ultimate beneficiary of a QTIP Trust is selected by the surviving spouse.

Mrs. Riley dies in 2016 leaving her entire $7.2 million estate through her will to her penniless husband, John. His estate goes to their children at his death. He has terminal cancer with a life expectancy of only 1 to 2 years. The alternative valuation date value of Mrs. Riley's entire estate is equal to $7,000,000. Select the post mortem technique John should utilize to reduce the overall estate tax liability of both estates:

	a.	Elect Portability.
	b.	Elect to use the alternative valuation date.
	c.	Disclaim $2,000,000 and elect to use the alternative valuation date.
	d.	Do Nothing.
When a decedent has a taxable estate, it is usually more advantageous to deduct the medical expenses from the estate tax return. True False