A:

A. funeral expenses.

B.
debts owed at time of death.



C. gift tax credit used during life.



D. the value of property that passes from the deceased to the surviving spouse.



Answer: B



Taking a long position on an option - that is, buying it - incurs a premium; not exercising the option means losing that money.



RELATED FAQS
  1. How do I roll over a spousal IRA?

    To roll over a spousal IRA, the surviving spouse can transfer the remaining funds from the deceased spouse's investing IRA ... Read Answer >>
  2. Justin and Britney, multi-millionaires, want to make the maximum gift of cash to ...

    The correct answer is c. A donor of money and/or gifts may give up to $12,000 to as many different recipients as they desire ... Read Answer >>
  3. How do you file IRS Form 709?

    IRS Form 709 is for reporting gifts subject to gift and generation-skipping transfer taxes. Learn how to file IRS Form 7 ... Read Answer >>
Related Articles
  1. Managing Wealth

    Want Your Will to Prevail? Don't Die Intestate

    If you die without making a last will and testament, you are said to have died intestate. What happens to your assets in this case?
  2. Trading

    Dividends, Interest Rates And Their Effect On Stock Options

    Learn how analyzing these variables are crucial to knowing when to exercise early.
  3. Retirement

    Estate Planning Law Changes You Need To Know

    When organizing your affairs, you'll need to be aware of tax rates and other regulations.
  4. Taxes

    What The New Gift Tax Rules Will Mean

    The lifetime maximum for gift taxes is $5.12 million. However, it could drop to $1 million. Here's what that will mean.
  5. Trading

    Three Ways to Profit Using Call Options

    A brief overview of how to provide from using call options in your portfolio.
  6. Trading

    Exploring European Options

    The ability to exercise only on the expiration date is what sets these options apart.
  7. Trading

    A Guide Of Option Trading Strategies For Beginners

    Options offer alternative strategies for investors to profit from trading underlying securities, provided the beginner understands the pros and cons.
  8. Trading

    Getting Started In Forex Options

    Stocks are not the only securities underlying options. Learn how to use FOREX options for profit and hedging.
  9. Trading

    What Is Option Moneyness?

    Get the basics under your cap before you get into the game.
RELATED TERMS
  1. Unlimited Marital Deduction

    A provision in United States Federal Estate and Gift Tax Law ...
  2. Exercise Price

    The price at which the underlying security can be purchased (call ...
  3. Personal Representative

    The executor or administrator for the estate of a deceased person. ...
  4. Marital Trust

    A fiduciary relationship between a trustor and trustee for the ...
  5. In The Money

    1. For a call option, when the option's strike price is below ...
  6. Option Premium

    1. The income received by an investor who sells or "writes" an ...
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  5. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  6. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
Trading Center