1. Bonnie is an attorney and has won a large case. She will have income of $500,000 this year. Bonnie wishes to make a gift of $100,000 to the American Red Cross. Which of the following assets would it be most advantageous to gift to the Red Cross?

1. $100,000 cash from a money market.
2. Artwork that is valued at $150,000. She inherited this from her Aunt Ellie 25 years ago, when it was valued at $25,000.
3. Google stock that she purchased two years ago for $10,000. It is currently worth $100,000.
4. A vacation home in the mountains that is worth $100,000. She purchased the property five years ago for $200,000.

1. 2. Which of the following is not an allowable deduction when calculating the gross estate?
   1. A bequest to charity
   2. Credit card debt
   3. Home mortgage
   4. Cost of a tombstone

3. Lyla at age 56 has an aggressive-growth stock portfolio valued at $6 million. Lyla would like to remove this portfolio and its future appreciation from her gross estate and from her probate estate. She would like to gift the portfolio to her two daughters, but she is reluctant to do so because she wants some income for the next nine years that might provide her with a hedge against inflation. Lyla has made many taxable gifts to her children in the past and she is concerned about the amount of gift tax she would have to pay if she gifted the portfolio outright to her daughters today. What planning technique will meet Lylas objectives?

1. A charitable remainder unitrust
2. A grantor retained unitrust
3. A grantor retained income trust
4. A charitable lead unitrust

1. 4. Ferdinand established a 12-year QPRT in December 2012 and has just passed away. The beneficiary of the QPRT is Ferdinands first wife, Felicia. The value of the home when it was placed in the QPRT was $600,000, and the current FMV of the home is $1,000,000. What amount, if any, will be included in Ferdinands gross estate?
   1. $0
   2. $400,000
   3. $600,000
   4. $1,000,000

5. From an estate planning perspective, the benefits of a family limited partnership include:

1. Reducing the value of the estate for estate tax purposes
2. Leveraging the value of lifetime gifts
3. Maintaining control over gifted assets during lifetime

1. I and II
2. II
3. II and III
4. I, II and III