3.2.1 Basic Quiz -- Bequest Types

A testator in his or her will may give a beneficiary a specific asset from his or her estate.

True False

If the testator in his or her will states that a specific asset is to be given to a person, and that asset is not in the estate at the testator's death, the specific bequest lapses.

True False

It is possible to leave someone in your will a specific amount of money.

True False

If a testator leaves a specific dollar amount in the form of a bequest to charity and the executor of the estate uses IRD assets to cover that specific amount bequest, the estate may be taxed on the IRD amount given to the charity.

True False

When a testator creates his or her will and leaves a specific dollar amount to someone, it may be that, at the death of the testator, the specified amount does not equal the same proportion of the estate that was intended when the testator's will was created.

True False

A major advantage in leaving a fractional amount or percent of the estate to heirs or charity is that all of the beneficiaries will share in the appreciation or the depreciation of the estate value.

True False

It is permissible for a testator to give a charity an undivided percentage interest in an asset and still receive a charitable deduction for the estate.

True False

If a testator wishes to transfer an IRA or an insurance policy to charity at his or her death, he or she must transfer 100% of the IRA or the insurance proceeds to the charity in order to receive a charitable deduction.

True False

With a qualified terminable interest property (QTIP) trust, it is possible to distribute principal to someone other than the surviving spouse during his or her lifetime.

True False

By using a QTIP trust, a testator can ensure that the trustee has the power to invade trust principal for the benefit of the surviving spouse. Any trust principal remaining at the surviving spouse's death will be transferred according the testator's interest expressed in the QTIP trust and the value of the principal will be included in the surviving spouse's gross estate.