Friday, May 3, 2024
Taxation and Giving

1.3.7 Basic Quiz -- Zero Estate Tax Planning
It is possible for families to transfer large amounts of wealth through to other family members without paying any gift or estate taxes.
     True      False
Under the Tax Relief Act of 2001, the federal estate tax exclusion remained the same from 2001 to 2011.
     True      False
A successful inheritance plan is one that makes the child a "better person."
     True      False
Based on the experience of one estate tax attorney, the average time it takes for a child to make a significant expenditure after receiving a large inheritance is two years.
     True      False
An effective inheritance plan will incorporate distributions to children in two lump sums.
     True      False
Gifts during life without taxation can be accomplished by using the annual gift exclusion.
     True      False
Testamentary charitable remainder unitrusts (CRUTs) and testamentary charitable lead trusts (CLTs) are excellent vehicles to accomplish layer three and four transfers.
     True      False
An excellent way to get a "double discount" for estate tax purposes is to combine a FLP or LLC with a CLT.
     True      False
Zero estate tax plans with IRAs are not possible since IRAs are frequently subjected to two layers of tax.
     True      False
The "tandem trust" plan incorporates the use of a testamentary CRT and a testamentary CLT.
     True      False



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