True/False

1. The amount of life insurance potentially included in the gross estate is the death benefit (face amount of policy) less than any outstanding policy loans.

2. The minority discount can be used to reduce the estate value of a company because the lack of control in making decisions impacting the operations of the corporation can negatively impact the FMV of the stock.

3. The gross estate includes the FMV of the financial security plus accrued interest and dividends declared but not paid.

4. Attorney Fees and Accounting Fees are deductible on both the 706 Estate Tax Return and the 1041 Estate income tax return.

5. The taxable estate is similar to the equity concept of a balance sheet. It reflects the FMV of all assets less the decedents liabilities and estate loss from operations

6. Exemption Portability was recently introduced in an effort to correct poor estate planning that often resulted from sweetheart wills. Effectively, in these cases, the first-to-die spouses Unified credit can be transferred to the surviving spouse.

7. For estate tax valuation propose, assets are always valued at fair market value on the date of death.

8. Retained life estate is a useful too; to remove an assets from the gross estate while retaining the ability use/enjoy the transferred property.