Please answer all questions!!!

Question 3

Which of the following items would be included in a decedents gross estate for federal estate tax purposes?

	A.	property in a trust established by the decedents father for his grandchildren with the decedent and the decedents sister as cotrustees of the trust
	B.	proceeds of a wrongful death suit brought by the decedents executor against the drunk driver who caused the decedents death
	C.	a life insurance policy on the decedents life that was transferred by the decedent 2 years earlier to an irrevocable trust for the benefit of her children
	D.	real estate given to the decedent by an aunt that, in accordance with the aunts will, passes to the decedents sister at the decedents death

Question 4

Which of the following gratuitous property transfers will be included in a donors gross estate at its date-of-death value for federal estate tax purposes?

I. a lifetime transfer in which the donor retained the power to change the donees shares of the transferred property

II. a lifetime transfer in which the donor retained a reversionary interest on the date of death equivalent to 3 percent of the value of the property

	A.	I only
	B.	II only
	C.	Both I and II
	D.	Neither I nor II

Question 5

Which of the following statements concerning estates is (are) correct?

I. The administration of a decedents estate should generally exist for an unlimited period of time.

II. An estate is considered a separate tax entity for federal income tax purposes.

	A.	I only
	B.	II only
	C.	Both I and II
	D.	Neither I nor II

Question 6

Which of the following statements concerning federal estate tax is correct?

	A.	Property passing outside the probate estate is not subject to federal estate tax.
	B.	All transfers made within 3 years of death must be brought back into the gross estate for federal estate tax purposes.
	C.	Jointly held property is not subject to federal estate tax.
	D.	For all estates required to file a return, a federal estate tax return must be filed within 9 months of death unless an extension is granted

Question 7

The federal estate tax is

	A.	an excise tax levied on the privilege of accumulating wealth
	B.	a tax on the right of a decedent to transfer property
	C.	a tax levied only on a decedents probate property
	D.	a tax on the right of a beneficiary to inherit property