Under what circumstance does an estate have an executor?   Multiple Choice   When there is no valid will.   When the estate exceeds the dollar amount of the estate tax exemption.   When the will establishes a trust fund.   When the will is contested.   When the will names a specific person to administer the estate.

Q: A grantor is disallowed from doing which of the following in a grantor trust?    Avoiding taxation…

A: A trust that is referred to as a "grantor trust" is one in which the person who creates and funds…

Q: ent who was married at the time of his/her death will have a gross estate composed of        His/her…

A: Person who died than there is need to calculate the gross estate so that can be transferred to legal…

Q: The holding period for property acquired by inheritance begins on the date of the decedent's death…

A: The concept given here is on period of holding asset from inheritance, whether be long term or short…

Q: All of these statements about the selection of a fiduciary are correct EXCEPT     A) an individual…

A: The answer is given below

Q: Q: What amounts are deducted from the gross estate of a decedent? Please, include specific examples.…

A: The gross estate refers to the total value of all assets owned by a deceased person at the time of…

Q: Section 1015 – basis of property received as a gift is the basis of the property in the hands of the…

A: In case FMV is greater than adjusted basis, the carryover basis of donor will be basis of receiver.…

Q: A donor gives a gift to a charity that is to be conveyed to a separate beneficiary. What is the…

A:

Q: In accounting for an estate or trust, how is the distinction between principal and income…

A: In accounting for an estate or trust, principal means the property or assets which have been…

Q: What are the responsibilities of the executor of an estate?

A: Anyone can be an executor. It is usually one of the nominees or the person benefitting from the…

Q: Property owned by a person who dies intestate and without heirs will escheat to the A. city. B.…

A: Escheat is a legal process through which ownership of property reverts to the state when an…

Q: Assuming that a decedent left no valid last will and testament, which of the following assets will…

A: Solution: D) III and IV

Q: Which of the following statements regarding the valuation of property for the purpose of applying…

A: The tax that is levied on transferring the property as a gift by inheritance in which there is an…

Q: What transactions are normally viewed as changes in the principal of an estate? What transactions…

A: Change in Principal:  The most common adjustments to the principal of the estate are:  Improvement…

Q: An administrator of an estate differs from an executor of a will in that an administrator a. has…

A: When a testator dies, the executor named in a will effectively takes over. In a similar manner, even…

Q: Which of the following are nontax characteristics of a qualified terminable interest property (QTIP)…

A: A Qualified Terminable Interest Property Trust enables the grantor to provide for his surviving…

Q: Accrued interest at the time of a decedent’s death would be interest income and considered part of…

A: Accrued interest is the amount of interest earned on a loan or other financial obligation but yet to…

Q: Comment on the following items relative to tax planning strategies of a fiduciary entity. To reduce…

A: The process of examining a financial position or plan to ensure that all components work together to…

Q: Which is FALSE in partial disposition of estate? O The taxpayer is required to execute an…

A: If any property obtained from inherited or from a deceased person which shall not have any legal…

Q: Which of the following statements are correct regarding the purpose and characteristics of a…

A: Answer -  1. A nuncupative will requires at least one witness. - A nuncupative will, also known as…

Q: The payment of legacies by an estate must follow an order of priority that requires general legacies…

A: The payment of legacies by an estate need not follow an order of priority that requires general…

Q: Which is FALSE in partial disposition of estate?  Group of answer choices  The estate is still…

A: Answer: The estate is still required to file the estate tax return within the prescriptive period…

Q: How does an executor discover the claims against an estate?

A: A claim is an assert in a case with or without providing evidence or proof.

Q: Which of the following items can be included in the definition of investment income for purposes of…

A: Investment income is a financial concept denoting the proceeds generated from an individual's or…

Q: Planning for estate taxes should address: a. Taking actions to benefit from a loss in property…

A: Planning for estate taxes shows the planning of an individual as how the estate tax should be…

Q: A handwritten will; may be subject to scrutiny after your passing. a) Statutory Will b) Cursive…

A: A holographic will is a report transcribed and marked by a departed benefactor, and it is an option…

Q: Which of the following is usually not accounted for as an adjustment to a trust's income? Multiple…

A: Trust income includes interest, dividends, rental income, and other earnings.

Q: Which one of the following statements best describes the most important feature of a support trust?…

A: The support trust is a special arrangement to pay beneficiaries for their education and support. The…

Q: Other than financial considerations, why should individuals consider preparing a valid will?

A: Valid will: This must comply with the legal requirements that are to be considered as a valid will…

Q: Which of the following is a characteristic of a fixed trust? Select one: The trustee usually has…

A: In a fixed trust, trust deed fixes the ratio of income and capital to be distributed to the…

Q: Estate planning is the process by which an individual may determine how his or her assets will be…

A: Estate planning refers to the process of making arrangements for the management and distribution of…

Q: For a decedent who has left a last will and testament, which of the following correctly state issues…

A: Charitable deduction refers to the form of deductions allowed to a taxpayer on the gifts or cash or…

Q: Which one of the following tax is payable by executors on the value of the estate of a deceased…

A: Taxes The main purpose of implementing the taxes is to raise the required percentage of amount which…

Q: 3. Which of the following transactions would constitute gifts for gift tax purposes (indicate Yes or…

A: Gift tax is a tax imposed on the transfer of property by one individual to another without receiving…

Q: What guidelines must be followed to classify a transaction as associated with the principal of an…

A: Generally accepted accounting principles are standard accounting principles, standards and…

Q: Comment on the following items relative to tax planning strategies of a fiduciary entity. A. To…

A: Tax planning seems to be a financial strategy for tax reduction. It seeks to lower one's tax…

Q: If you don't have a will when you die, the state will take steps to see that your assets are…

A: A will is a testament made by the testator regarding the distribution of the assets that he or she…

Q: Which of the following is correct? The gain basis for property received by gift is the lesser of…

A: The tax basis of inherited or gifted property: Various tax rules are given under Federal tax in…

Q: What claims have priority to the distributions made by an estate?

A: Probate laws: After the death of decedent, in order to seek the problems of how his property should…

Q: Why might real estate be omitted from an inventory of estate property? Multiple Choice Real estate…

A: Answer: Correct option is A.

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.