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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Advanced Planning Strategies | 15% | - Charitable giving techniques - Life insurance in estate planning - Planning for incapacity and special needs - Business succession planning & buy-sell agreements |
| Topic 2: Estate Planning Process & Legal Foundations | 20% | - Objectives and ethical considerations - Probate process and non-probate transfers - Property ownership forms and titling - Wills, powers of attorney, and advance directives |
| Topic 3: Federal Gift Tax System | 20% | - Exclusions, exemptions, and valuation rules - Taxable gifts and filing requirements - Gift tax calculation and strategies |
| Topic 4: Trusts & Fiduciary Arrangements | 20% | - Trust income taxation - Generation-skipping transfer tax (GSTT) - Specialized trust structures - Revocable and irrevocable trusts |
| Topic 5: Federal Estate Tax System | 25% | - State death taxes and basis adjustments - Marital and charitable deductions - Gross estate inclusion rules - Credits and tax computation |
1. Which of the following statements concerning the imposition of state death taxes on property owned by a decedent is (are) correct?
1.Real estate must be taxed in the state where the decedent was domiciled.
2.Intangible personal property is generally taxed in the state where the decedent was domiciled.
A) Both 1 and 2
B) 2 only
C) Neither 1 nor 2
D) 1 only
2. Which of the following statements concerning pooled-income funds is (are) correct?
1.A pooled income fund is similar to a mutual fund maintained by a qualified charity.
2.It is an irrevocable arrangement in which the remainder interest passes to charity.
A) Both 1 and 2
B) 2 only
C) Neither 1 nor 2
D) 1 only
3. Which of the following statements concerning charitable remainder unitrusts is correct?
A) The remainder interest is paid to the qualified charity after a term of years not greater than 15 years.
B) The net fair market value of the trust assets are revalued annually.
C) No further contributions may be made to aunitrust after the initial payment.
D) A fixed percentage of not less than 10 percent of the net fair market value of the trust assets is paid to thenoncharitable beneficiaries.
4. A man is planning to establish and fund an irrevocable trust for the benefit of his two sons, ages 19 and 22, and plans to give the trustee power to sprinkle trust income. From the standpoint of providing federal income, gift, and estate tax savings, which of the following would be a suitable trustee?
1.The grantor of the trust
2.The grantor's 22-year-old son
A) Both 1 and 2
B) 2 only
C) Neither 1 nor 2
D) 1 only
5. Limited interests in property include all the following EXCEPT
A) life estates
B) fee simple estates
C) remainder interests
D) reversionary interests
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: B |
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