Deck 16: Applications in Estate Planning

Question 1

As a result of an unqualified refusal by a potential beneficiary to accept a transfer of property,the property passes to:

A)The beneficiary.
B)The contingent beneficiary.
C)The disclaimant.
D)The disclaimant beneficiary.

Answer 1

B

Question 2

If a surviving spouse remarries,and is the survivor of that subsequent marriage,a ____ trust can preserve the original exemption amount.

A)By-pass trust.
B)Credit Shelter trust.
C)Exemption trust.
D)Qualified Domestic trust.

Answer 2

B

Question 3

An estate under Section 6166 allows for the estate tax attributable to the closely held business to be paid in ___ equal installments beginning four years after the decedent's death.

A)Six.
B)Nine.
C)Ten.
D)Fourteen.

Answer 3

C

Question 4

Which of the following is not a feature of a QTIP?

A)Bi-annual payments to the spouse.
B)Exclusive payments for the surviving spouse.
C)Lifetime income interest in the trust for the surviving spouse.
D)Mandatory payments to the surviving spouse.

Question 5

Who of the following is not a related party for Installment Sale rules?

A)Brother.
B)Children.
C)Sister.
D)Uncle.

Question 6

Which of the following trusts allows a non-U.S.citizen spouse to benefit from the marital deduction normally allowed to U.S.spouses.

A)GRAT.
B)QDOT.
C)QPRT.
D)QTIP.

Question 7

Which of the following is not a type of buy-sell agreement?

A)Cross-purchase Agreement.
B)Entity Purchase Agreement.
C)Member Purchase Agreement is a distractor.
D)Wait and See Agreement.

Question 8

Which of the following is a special use valuation that can be elected by farms and closely-held businesses?

A)Section 303.
B)Section 1211(a).
C)Section 2032(a).
D)Section 6166.