CFP

Gifting - Sample Questions 1 - 5

1. Annual gifting is an estate planning technique used by many individuals to reduce the value of their gross estate. What is the maximum amount that a husband and wife can gift to a grandchild in 2013 under the annual exclusion amount?

A) $12,000
B)
$13,000
C)
$26,000
D) $28,000

2.
In calculating the estate tax, the taxable gifts are added back into what to determine the tax base?

A) Taxable estate
B)
Adjusted gross estate
C)
Gross estate
D) Tentative tax


3. Harold gifts 1,000 shares of ABC stock to his son Jeremy. Harold paid $50 per share for the stock in 2010. When he gifted the stock to Jeremy (May 2013), it traded at $40 per share. If Jeremy sells the stock 30 days later at $35 per share, what is his taxable gain/loss?

A) $5,000 short-term loss
B)
$5,000 long-term loss
C)
$15,000 short-term loss
D)
$15,000 long-term loss

4. Now, assume that Harold gifts 1,000 shares of XYZ stock to his son Jeremy. Harold paid $100 per share for the stock in 2008. When he gifted the stock to Jeremy (May 2011), it traded at $140 per share. If Jeremy sells the stock 30 days later at $150 per share, what is his taxable gain/loss?

A) $10,000 short-term gain
B)
$10,000 long-term gain
C)
$50,000 short-term gain
D) $50,000 long-term gain


5. Which of the following different types of gifts would be most beneficial to a husband and wife transferor at the current time to include in their estate gifting strategy to the three grandchildren?

A) Stock purchased for $50,000 and now worth $20,000
B)
Stock purchased for $15,000 and now worth $60,000
C)
A new vehicle purchased for $40,000
D) Boat worth $20,000



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