Taxation Paper 2

1

If the executor of a decedentís estate elects the alternate valuation date and none of the property included in the gross estate has been sold or distributed, the estate assets must be valued as of how many months after the decedentís death?






2

What amount of a decedentís taxable estate is effectively taxfree if the maximum basic exclusion amount is taken during 2013?






3

Which of the following credits may be offset against the gross estate tax to determine the net estate tax of a US citizen dying during 2013?
Applicable credit
Credit for gift taxes paid on gifts made after 1976






4

Fred and Amy Kehl, both US citizens, are married. All of their real and personal property is owned by them as tenants by the entirety or as joint tenants with right of survivorship. The gross estate of the first spouse to die






5

In connection with a ďbuy-sellĒ agreement funded by a cross-purchase insurance arrangement, business associate Adam bought a policy on Burrís life to finance the purchase of Burrís interest. Adam, the beneficiary, paid the premiums and retained all incidents of ownership. On the death of Burr, the insurance proceeds will be






6

Following are the fair market values of Waldís assets at the date of death:
Personal effects and jewelry $1,750,000
Land bought by Wald with Waldís funds five years prior to death and held with Waldís sister as joint tenants with right of survivorship 3,800,000
The executor of Waldís estate did not elect the alternate valuation date. The amount includible as Waldís gross estate in the federal estate tax return is






7

Which one of the following is a valid deduction from a decedentís gross estate?






8

Eng and Lew, both US citizens, died in 2013. Eng made taxable lifetime gifts of $400,000 that are not included in Engís gross estate. Lew made no lifetime gifts. At the dates of death, Engís gross estate was $3,600,000, and Lewís gross estate was $4,800,000. A federal estate tax return must be filed for Eng Lew






9

With regard to the federal estate tax, the alternate valuation date






10

Proceeds of a life insurance policy payable to the estateís executor, as the estateís representative, are






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