Thursday, May 2, 2024
Taxation and Giving

1.3.1 Basic Quiz -- Estate Tax Overview
When a person dies with a taxable estate, the surviving spouse and other heirs must pay the federal estate tax, since they receive the cash and property from the estate.
     True      False
The estate tax rates are lower for distributions to family as opposed to distributions to unrelated persons. This policy reflects Congress's desire to promote family.
     True      False
A properly created living trust will not be included in the decedent's estate for estate tax purposes.
     True      False
Under state law, IRAs, life insurance and joint tenancy property pass to other persons without having to go through the probate process.
     True      False
A decedent's gross estate shall include the value of all property, real or personal, tangible or intangible, wherever situated.
     True      False
A farm operated by a family may be entitled to a reduced valuation for estate tax purposes.
     True      False
As a general rule, life insurance policies are not subject to estate taxes.
     True      False
The value of a Charitable Remainder Trust (CRT) that pays to the donor and any other person is includable in the estate tax calculation.
     True      False
If a person is terminally ill, then he or she cannot use the mortality tables prescribed by the Tax Code.
     True      False
Any gift taxes paid within five years of death are added back into the gross estate.
     True      False



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