1. Ove rqualification means that the decedent used too much of his applicable estate tax credit. (a) True (b) False

2. One advantage of the unlimited marital deduction is that the payment of any estate taxes can be deferred until the death of the surviving spouse. (a) True (b) False

3. Provided that a survivorship clause does not require the surviving spouse to survive the decedent for more than nine months, any transfers subject to the survivorship clause will qualify for the unlimited marital deduction. (a) True (b) False

4. Property disclaimed by a surviving spouse will still qualify for the unlimited marital deduction. (a) True (b) False

5. Which of the following accurately describes a QTIP Trust? (a) A QTIP is sometimes called a “B” or “Q” Trust. (b) Trust income must be paid to the spouse or other designated beneficiary at least annually. (c) The trust assets will be included in the gross estate of the surviving spouse. (d) The surviving spouse designates the remainder beneficiaries of the QTIP.

6. Which of the following is not a requirement of the unlimited marital deduction? (a) In order to claim a marital deduction, the decedent must have been married as of the date of his death. (b) The surviving spouse must receive property through the estate. (c) The surviving spouse must be a U.S. citizen. (d) The gross value of qualifying property left to the surviving spouse is included in the marital deduction.

7. Anne recently died. Anne is survived by her husband, Edward, and daughter, Catherine. Which of the following would be a qualifying property transfer for the purposes of the unlimited marital deduction? (a) Anne leaves ownership of certain copyrights to Edward. (b) Property transferred to a credit shelter trust for the benefit of Catherine, with Edward as the trustee. (c) Anne leaves her beach house to Edward, subject to the condition that if Edward does not survive Anne’s sister, Anne’s sister will get the property. (d) The $1,000,000 life insurance policy on Anne’s life owned by Edward.

8. In which of the following situations would the use of a QDOT be appropriate? (a) Tom dies and is survived by his wife, Tina, who is not a U.S. citizen. (b) Regina dies and is survived by her husband, Raul, who becomes a U.S. citizen two months after Regina’s death. (c) Harold dies and does not have a surviving spouse but has a significant other. (d) Franz, who is not a U.S. citizen, dies and is survived by his wife, Francine, who is a U.S. citizen. .

9. Of the following statements, which is false? (a) The availability of the unlimited marital deduction merely postpones the potential estate tax due. (b) Property that is not included in the decedent’s gross estate cannot qualify for the unlimited marital deduction. (c) The death benefit of a life insurance policy included in a decedent’s gross estate is not eligible for the unlimited marital deduction, even if the surviving spouse is the listed beneficiary and receives the proceeds. (d) An individual can use the unlimited marital deduction during life to fund the surviving spouse’s applicable estate tax credit. The best property to transfer in this method is the property that is expected to appreciate in value after the transfer to the surviving spouse.

10. Which of the following is NOT a terminable interest? (a) An ownership interest in a life insurance policy. (b) A life estate in a home. (c) An interest in a patent. (d) An interest in property for a term equal to an individual’s life.