1. Mike Jones died in 2013, which of the following property items would be included as part of his gross estate?
I. Life insurance proceeds paid on a policy owned by Mike.
II. Traditional IRA belonging to Mike.
III. Cash gift of $100,000 to Mike's son in 2012, no gift tax was paid.
IV. House purchased by Mike, but held in joint tenancy with his brother.
A) I and II only
B) I, II and III only
C) II, III and IV only
D) I, II and IV only
2. All of the following are correct statements concerning the estate tax and the estate tax returns EXCEPT:
A) The estate tax return is filed on Form 706.
B) The estate tax return is due nine months after date of death (unless extension of time is granted).
C) The alternate valuation date is used when the gross estate is larger than the date of death value.
D) The marital deduction applies to both community and separate property states.
3. The gross estate less certain expenses such as funeral costs, debts and court fees is known as which of the following:
A) Taxable estate
B) Adjusted gross estate
C) Tentative taxable estate
D) Tax base
4. Mr. Clown died in 2013 with an adjusted gross estate of $8 million. He left $2 million to Mrs. Clown, $1 million to the Humane Society, paid $500,000 in state estate taxes, $20,000 in funeral expenses and had $200,000 remaining on the mortgage. What is Mr. Clown's Taxable Estate?
Which of the following is a TRUE statement:
A) For the tax year 2013, the maximum federal estate tax bracket is 40%.
B) Over 50% of the states have adopted a state estate tax.
C) Taxable estate less the marital deduction = tentative tax base.
D) The annual gift tax exclusion amount is $12,000 for 2013.
Managing Wealthby Cathy Pareto, CFP®, AIF® (Contact Author | Biography) The estate tax is a type of "death tax", whereby taxes are imposed on the right to transfer or receive property at the property ...
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