CFP

By Investopedia AAA

Marital Deductions - Answer Key

1. C

The decedent does not have to be married for five years, just legally married at the time of death. No gift tax return is required for the marital deduction.


2. B

A QDOT is a trust that is established by a U.S. citizen decedent to protect the interests of their non-U.S. spouse. It allows the assets of the decedent to pass estate tax exempt into the QDOT through the use of the marital deduction. Assets are taxed in the estate of the second to die non-U.S. spouse.

3.
A

If the decedent names their spouse as the beneficiary of an IRA, the IRA will pass to the spouse via contract, not under the marital deduction. All of the other choices are common transfer techniques under the marital deduction.

4.
C

The terminal interest rule was created to prevent the use of the marital deduction if property is passed to a surviving spouse with specific instructions that contingencies or events could affect the treatment of the assets staying within the spouse's estate.

Introduction

You May Also Like

Related Articles
  1. Several things factor into the salary of a financial advisor. Here's a look.
    Investing Basics

    How Much Does A Financial Advisor Earn?

  2. With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Here are the top 5 forex risks to avoid.
    Economics

    Top 5 Forex Risks Traders Should Consider

  3. ISAs are financial instruments that allow students to raise funds to pay for their degrees by selling shares in their future earnings.
    Investing Basics

    Funding Higher Education With An ISA

  4. Top Ways to protect your purchases from credit card hackers or security breaches.
    Credit & Loans

    7 Ways To Protect Against Credit Card ...

  5. The Internal Revenue Service's new 2015 contribution limits for tax-deferred savings plans are higher; here's what you and your clients should know.
    Investing Basics

    New 2015 Contribution Limits: Advisors ...

Trading Center