Question 31

From an income tax perspective, a defective trust is also known as:

A - A mistake

B - A simple trust

C - A complex trust

D - A grantor trust

Question 32

Angela Snider, age 32, has $19,000 in her qualified retirement plan. The maximum amount that Angela can borrow against her account is

A - zero qualified retirement plans do not permit loans

B - $8,000

C - $ 9,500

D - $10,000

E - $50,000

Question 33

Jill is considering naming a bypass trust as beneficiary of her IRA after her death. Jills spouse is a discretionary income beneficiary of the bypass trust. Which of the following is a reason for not designating the bypass trust as beneficiary of her IRA?

A - a bypass trust is the best way to stretch income tax deferral over the life of Jills spouse and his designated beneficiary

B - IRA assets will appreciate as income taxable minimum distributions are made

C - Jills spouse can treat the IRA as his own

D - part of the unified credit will be wasted on income tax

Question 34

Decedents will was drafted by Attorney A. The will names Executor and suggests Executor use Attorney A or his law partner Attorney B as attorney for the estate. Executor should:

A - Use Attorney A as attorney for the estate

B - Use Attorney B as attorney for the estate

C - Use any attorney other than Attorney A or Attorney B as attorney for the estate

D - Select the attorney to use for the estate

Question 35

Jane Tally has a thrift/savings plan with her employer. She knows

A - her contribution to the plan is voluntary and made with after-tax dollars

B - 100% of her contribution to her account is vested immediately

C - her employers contributions to her account must comply with Internal Revenue Code requirements for qualified plans

D - all of the above

E - only a and b