Estate Planning

Please provide little explanation with the answers.

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1- For purposes of the marital deduction, all the following are advantages of a power of appointment trust EXCEPT:

(A) Principal distributions can be varied according to the surviving spouses needs.

(B) Probate of trust corpus can be avoided at the surviving spouses death.

(C) Management and financial guidance exist for the surviving spouse.

(D) Non-income producing property can be purchased and safely retained in the trust.

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2- All of the following statements concerning a Section 6166 installment payment of estate taxes attributable to the inclusion of a closely held business in a decedents gross estate are correct EXCEPT:

(A) Under certain circumstances, the estate will forfeit its right to the installment payments and the remaining unpaid tax will be accelerated for payment.

(B) The business must constitute more than 35% of the decedents adjusted gross estate.

(C) If the estates qualifies, both the tax payments attributable to the business and the payments of interest on the unpaid balance must be paid in equal installments for 15 years.

(D) The estates personal representative has the sole discretion to elect a deferral of the estate tax payments.

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3- All the following statements concerning the kiddie-tax rules are correct EXCEPT:

(A) The rules are promulgated to curtail the shifting of income from high-tax-bracket parents to the lower-tax-bracket children.

(B) The rules are limited to trust income received by a child from trusts established by the childs parents or grandparents.

(C) A standard deduction applies to a portion of the childs unearned income.

(D) The rules provide for the taxation of a childs net unearned income at the parents highest marginal tax rate.