QUIZ 1&2

Which of the following is NOT typically included in the gross estate for estate tax purposes?

• Real estate owned by the decedent

• Stocks and bonds owned by the decedent

• Life insurance proceeds payable to the decedent's spouse

• The decedent's personal car, which is given to a family member in the will.

What is the purpose of deductions allowed from the gross estate?

• To increase the estate tax liability.

• To reduce the taxable estate and the estate tax owed.

• To determine the value of assets for inheritance purposes.

• To calculate the amount of inheritance tax.

Which of the following is an example of an ordinary deduction from the gross estate?

• Charitable contributions

• Funeral expenses

• Marital deduction

• Both b and c

What type of deduction is the marital deduction?

• Ordinary deduction

• Special deduction

• Neither a nor b

• Both a and b

The tax credit for tax paid to a foreign country is designed to:

• Increase the overall tax burden.

• Avoid double taxation on the same income.

• Penalize taxpayers with foreign assets.

• Encourage investment in foreign countries.

Who is typically responsible for filing the estate tax return?

• The deceased's spouse

• The executor or administrator of the estate

• The beneficiaries of the estate

• The state government

When is the estate tax return typically due?

• Immediately after the death of the decedent

• Within six months of the decedent's death

• One year after the decedent's death

• Within three years of the decedent's death

What is the purpose of the CPA certificate attached to the estate tax return?

• To verify the accuracy of the return's financial information.

• To provide legal advice on estate planning.

• To determine the beneficiaries of the estate.

• To assess the value of the estate's assets.

What happens if the estate tax return is not filed on time?

• There are no penalties.

• The estate may be subject to penalties and interest.

• The estate will automatically be exempt from estate tax.

• The tax liability is reduced.

Which of the following assets might be excluded from the gross estate if properly structured?

• A life insurance policy with a named beneficiary other than the estate.

• A jointly owned property with right of survivorship.

• A trust established before the death of the decedent.

• All of the above.