1. Which of the following are potential expenses, taxes or debts that a family or executor should expect with the death of a close family member?

I. Funeral costs
II. Debts owed to creditors
III. Estate tax
IV. Attorney's fees

A) I and II only
B)
I, II and IV only
C)
III and IV only
D) I, II, III and IV
2. All of the following are effective estate tax minimization, avoidance or preparation techniques EXCEPT:

A) ILIT
B)
Revocable trusts
C)
Pre-death annual gifting
D)
CRAT/CRUT

3. Which of the following are benefits of using life insurance as an estate planning tool?

I.Life insurance premiums are listed as an estate tax credit on Form 709
II. Proceeds are exempt from federal income tax
III. Insurance can be excluded from the gross estate
IV. Proceeds are available within a couple of weeks

A) I and II only
B)
I, II and IV only
C)
II, III and IV only
D) All of the above

4. In order to preserve the family nature of a closely-held business at the death of one of the key persons, the IRS has established favorable tax treatment for such business entities. For qualified estates, the estate tax payments can be made over an installment period if the business qualifies under which section of the IRC?

A) Section 6166
B)
Section 2504
C)
Section 905
D) Section 1244




Sample Questions 5 - 8

Related Articles
  1. Financial Advisor

    How Life Insurance Can Help Reduce Estate Taxes

    Inheritance is a double-edged sword, as leaving money can create estate tax burdens. Opting for a life insurance plan can help mitigate those burdens.
  2. Taxes

    8 States With Estate Taxes

    Understand the difference between the federal estate tax and state-specific estate taxes. Learn about some of the worst states with estate taxes.
  3. Taxes

    Estate Taxes: Who's on the Hook?

    Inheritance taxes can be tricky. Most people have to deal with them at a very inconvenient time. It's better to learn the laws now so you're ready later.
  4. Financial Advisor

    How Estate Taxes Work, A Real Life Example

    The estate tax is frequently misunderstood. Learn more details about exactly how estate, or inheritance, taxes work in the United States.
  5. Taxes

    How Much Will You Owe on Your Inheritance?

    Estate planning can be unpleasant, but in order to get the full benefit of what you've inherited, it’s important to be prepared for the related taxes.
  6. Personal Finance

    What To Expect On The CFA Level II Exam

    This article will help you understand the nuances of the CFA Level II exam.
  7. Retirement

    Will Your Estate Plan Create Stress for Loved Ones?

    When it comes to financial planning, many people overlook the critical aspect of estate planning.
  8. Trading

    Introduction To Level II Quotes

    Level II quotes show a ranked list of the best bid and ask prices from each market participant, providing detailed insight into a stock’s price action.
Frequently Asked Questions
  1. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The concept of CAGR is relatively straightforward and requires only three primary inputs: an investments beginning value, ...
  2. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors with insight into how efficiently a company (or more specifically, ...
  3. What is the difference between Communism and Socialism?

    Learn how some countries are incorporating socialist methods into capitalism.
  4. What's the difference between a stop and a limit order?

    A limit order is an order that sets the maximum or minimum at which you are willing to buy or sell a particular stock. With ...
Trading Center