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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Federal Estate Tax System | 25% | - Marital and charitable deductions - Credits and tax computation - State death taxes and basis adjustments - Gross estate inclusion rules |
| Topic 2: Advanced Planning Strategies | 15% | - Business succession planning & buy-sell agreements - Life insurance in estate planning - Planning for incapacity and special needs - Charitable giving techniques |
| Topic 3: Estate Planning Process & Legal Foundations | 20% | - Wills, powers of attorney, and advance directives - Property ownership forms and titling - Objectives and ethical considerations - Probate process and non-probate transfers |
| Topic 4: Federal Gift Tax System | 20% | - Gift tax calculation and strategies - Exclusions, exemptions, and valuation rules - Taxable gifts and filing requirements |
| Topic 5: Trusts & Fiduciary Arrangements | 20% | - Specialized trust structures - Trust income taxation - Generation-skipping transfer tax (GSTT) - Revocable and irrevocable trusts |
Examples of terminable interests that are nondeductible for the federal estate tax marital deduction include which of the following?
1.A property interest that would pass to someone else if the surviving spouse remarries
2.A life estate in property that would pass to another person at the death of the surviving spouse
Correct Answer: A 🗳️
In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his estate. He wants to make certain that if he predeceases his wife the death proceeds will be available to provide income for his wife during her lifetime and to provide for their two children after her death. He would like the policy and/or its death proceeds to be as free of federal gift and estate taxes as possible with respect to both him and his wife. Which of the following courses of action would best accomplish these objectives?
Correct Answer: B 🗳️
Which of the following statements concerning federal gift, estate, and income taxes is (are) correct?
1.A taxable gift of income-producing property to a donee automatically transfers income tax liability on the gifted property to the donee.
2.Once part or all of a taxable gift is made to a trust, the property can no longer be includible in the donor gross estate.
Correct Answer: B 🗳️
The federal gift tax is
Correct Answer: B 🗳️
Which of the following items of property will be included in a decedent's gross estate for federal estate tax purposes?
1.The value of property subject to a general power of appointment that the decedent possessed at death
2.The value of all gratuitous lifetime transfers of property made within 3 years of death
Correct Answer: D 🗳️
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