1. Which of the following are required in order to utilize the marital deduction?

(1) Spouse must be a U.S citizen.
(2) Property passing to the spouse must be included in the decedent's gross estate.
(3) Decedent must be married for at least five years.
(4) Decedent must be legally married at time of death.
(5) Spouse must file a gift tax return for the property received.

A) 1, 2, 3 only
B)
2, 4 and 5 only
C)
1, 2 and 4 only
D) All of the above

2. Which of the following are advantages of a Qualified Domestic Trust (QDOT)?

I. Taxes are paid at the death of the first spouse.
II. Taxes are delayed until the death of the surviving spouse.
III. This trust provides assets for the non-U.S. citizen spouse.
IV. Allows the non-citizen spouse to qualify for the marital deduction.

A) I and III only
B)
II, III and IV only
C)
I and IV only
D) II and III only

3. Which of the following is not a method of leaving assets to a spouse under the marital deduction?

A) Naming your spouse as an IRA beneficiary
B)
Power of appointment
C)
QTIP trust
D)
Specific outright bequest

4.
All of the following are exceptions to the terminal interest rule, EXCEPT:

A) QTIP income for life
B)
General power of appointment
C)
Property that reverts to the children if surviving spouse remarries
D)
CRAT beneficiary



Answer Key

Related Articles
  1. Taxes

    The Tax Benefits Of Having A Spouse

    Check out the perks designed to promote and preserve your post-work savings - if you're married, that is.
  2. Financial Advisor

    How Advisors Can Help Surviving Spouses

    When someone dies, it's natural for a surviving spouse to grieve. But with a little planning, fear of an unknown financial future can be avoided.
  3. Retirement

    When Spouses Die, Who Gets Their Retirement Funds?

    You don't automatically get your spouse's IRA, 401(k) and other accounts when he or she dies. Here's how to plan so the right survivors get the funds.
  4. Personal Finance

    Happily Married? File Taxes Separately!

    Just because you are in love doesn't mean that a joint return is best for both of you.
  5. Retirement

    Estate Planning for Beginners, Part Four

    This is how disclaimer trusts work and when it makes sense to use them in an estate plan.
  6. Personal Finance

    Reverse Mortgage: Could Your Widow(er) Lose the House?

    A guide to determine if you're at risk that you or your surviving spouse could be evicted from your home.
  7. Financial Advisor

    Making Social Security Work for Client Couples

    What are the best ways to advise client couples when it comes to filing for social security? Here are some strategies.
  8. Small Business

    Why You Shouldn't Let Your Partner Do The Books

    One person often deals with the finances in a relationship, but being ignorant has a cost.
  9. Financial Advisor

    Estate Planning Tips for Tax-Deferred Investments

    Bequeathing assets in tax-deferred investments can be tricky. Here are some of the pitfalls and how to avoid them.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center