TrueFalse

1.Accrued interest at the time of a decedent's death would be interest income and

considered part of estate income rather than principal _ __________

2.The gain realized from the sale of stocks should also be included in estate principal. _ ____ ______

3.Certain assets of decedents can pass directly to their heirs and not be included in the

probate estate_________

4.When recording the inventory of an estate, the assets of the estate are recorded net

of the decedent's debts.

_____ _______

5.A fiduciary's claim against an estate for administrative expenses is generally satisfied

before claims for unpaid taxes

6.The unified credit has the effect the effect of exempting a portion of estate assets

from estate taxes.

7.Annual gifts per done in excess of established amounts will be added to the taxable

estate of a decedent._

8.Property acquired by an heir to an estate retains the same tax basis as when held by

the decedent.

9.If an estate consists of wasting assets such as timber, it would be appropriate to

include depletion in the calculation of estate income.

10.A The payment of legacies by an estate must follow an order of priority that requires

general legacies to be satisfied before specific legacies..

11.Both estates and trusts must maintain the distinction between

principal and income.

12.A trust may be used to shelter assets of an estate from taxation.

13.Accounting for a trust is similar to that of an estate

14.Trust may be created to serve a variety of purposes such as serving to reduce

estate taxes.

15.A charitable trust is used to split assets between surviving spouse and the trust.

16.A taxable estate may be increased by taxable gifts made by the decedent.

17.An administrator is appointed by a probate court.

18.Intervivos trust is a way of passing property to one's heir without a will.

19.A will named an executor to administer an estate

20.Individuals with no will is said to have died intestate.