Question 46

Which of the following are alternatives to an UGMA/UTMA account?

1. Crummey trust
2. 2503(c) trust
3. QTIP

A - II only

B - II and III

C - I and II

D - I and III

Question 47

Bob Thomas died at a time when his closely held business was valued at $4,500,000. His gross estate was $6,500,000. Administrative costs, debts and expenses totalled $500,000. Federal estate taxes totalled $300,000. The amount of taxes which can be deferred under IRC Section 6166 is equal to:

A - $0

B - $208,000

C - $225,000

D - $300,000

Question 48

T. L. Timber, age 40, works for Treeline, Inc., a logging company. Treeline uses both compensation and service as a basis for allocating Treelines $20,000 annual contribution to Treelines profit sharing plan. How much would be allocated to T. L.s account if he received 40 units of credit for his 20 years of service and 160 units for $80,000 in earnings? Total units for all employees are 1,000.

A - need more information to calculate

B - $2,000

C - $100

D - $8,000

E - $4,000

Question 49

Under which of the following circumstances would a revocable trust become irrevocable?

1. When the Grantor dies.
2. When the trust beneficiary dies.
3. When the trustee resigns

A - I only

B - I and III

C - III only

D - II and III