The primary difference between a life estate and a fee simple absolute estate is that life estates O automatically terminate upon the death of a named person.  O are descendible.  O are devisable.  O are not subject to corporate tax.

Which one of the following will result from the spouse of a decedent making a qualified disclaimer of property?     A) It results in a taxable gift of the property by the disclaimant.     B) The property is excluded from the disclaimant's gross estate.     C) The property is probated in the disclaimant's estate.     D) The spouse will have to report any income earned by the property prior to the disclaimer.

Amount receivable by the estate of the deceased, his executor or administrator as a beneficiary under policy taken by the decedent upon his own life is: *   excluded from gross income. part of gross income whether the beneficiary is revocable or irrevocable. part of gross income if the beneficiary is irrevocable. none of the above

Which of the following transfers is subject to estate tax?a. Transfer passing under general power of appointmentb. Merger of usufruct to the owner of naked titlec. Transfer of property from fiduciary heir to fideicommissary heird. Irrevocable donation inter vivos

Which of the following statements is CORRECT regarding the effect of the generation-skipping transfer tax (GSTT) and the transferor's spouse?   A)Only an individual who is currently married to the transferor will always be deemed to be in the same generation as the transferor regardless of the difference in their ages.   B)Any individual who has been married at any time to the transferor is always deemed to be in the same generation as the transferor regardless of the difference in their ages or whether they are married or have been divorced at the time of the transfer.   C)A transferor may make a generation-skipping transfer to any individual who has been married at any time to the transferor without restriction.   D)Only an individual who is currently married to the transferor at the time of the transfer will always be deemed to be in the same generation as the transferor.

Which of the following is true with respect to the related party rules? a.A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party. b.Bill sells stock to his sister for a $3,000 loss. Bill can deduct the loss on his tax return. c.A taxpayer's uncle is a related party for purposes of Section 267. d.Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder. e.None of these choices are correct.

Under intestacy laws, if Darlene has no heirs, then the property of her estate   a.  is held in trust for future beneficiaries.     b.  devolves to a preselected charity.     c.  passes to a person designated by a probate court.     d.  is transferred to the state.

under what circumstances are property taxes and certain other expenses owed at death deductible on both form 706 and form 1041? a. the decedent's will did not provide instructions b. the amounts owed were paid by the estate, but could have been deducted on the decedent's return if they had been paid prior to death. c. the amounts owed were also simultaneously deducted on the decedent's final return. d. the amounts due were paid by the decedent prior to death but the payments were not received until after the decedent had passed away.

Which is subject to donor's tax?*   Merger of usufruct in the owner of the naked title. Delivery of property by the trustee to the beneficiary Cancellation of indebtedness of a debtor out of gratuity support payment to children

Assuming that a decedent left no valid last will and testament, which of the following assets will pass by the laws of intestate succession? Property in an inter vivos trust established by the decedent in which the decedent was the income beneficiary at the time of death, and the decedent's children were remainder beneficiaries Property held by the decedent and his spouse as tenants in common Property held by the decedent and his spouse as community property Property in an inter vivos trust established by the decedent's father in which the decedent was the income beneficiary at the time of death, and the decedent's children were remainder beneficiaries     A) I and II     B) I, II, and IV     C) II and III     D) III and IV