1.4.2 Basic Quiz -- Exclusion and Exemption

The gift tax annual exclusion is available to each donor per donee per year.

True False

In the case of a direct skip, the gift tax annual exclusion can be used to exclude certain transfers from GSTT.

True False

There is an unlimited gift tax exclusion for tuition paid directly to educational institutions and for payments made directly to health care providers.

True False

The unlimited gift tax exclusion for tuition and medical expenses applies to inter vivos generation-skipping transfers also.

True False

Every individual is allowed a GSTT-exemption.

True False

The GSTT exemption, since its inception, has never been increased.

True False

The annual gift tax exclusion can apply to transfers in trust to a skip person.

True False

Any allocation of an individual's GSTT exemption may be irrevocable.

True False

An allocation of an individual's GSTT exemption for estate tax purposes may be made at any time on or before the filing deadline of the estate tax return (including extensions).

True False

A "reverse QTIP election" is where an individual is allowed to terminate a QTIP trust.