1. Which of the following is an example of a direct skip?

A. A person gives a plot of land to his or her nephew

B. A grandmother makes a transfer to a trust benefiting her great-grandchildren

C. A father gives stock to his son and grandson

D divorced person transfers property to his or her former spouse

2. In general, a grantor trust:

A. Protects the grantor by not taxing him/her on the income of the trust.

B. Subjects the grantor of the trust to income tax liability, as owner of the trust.

C. Protects the trust from any and all income tax liability.

D Protects the grantor by not taxing him/her on the income of the trust.

Subjects the trust beneficiaries to income tax liability.

3. Harry Jenkins, a widower, owned 10 acres of land that he purchased in 1994 for $5,000 per acre. On the date of Harry's death, June 30, 2011, the land was valued at $10,000 per acre. Harry's only child is Elizabeth. If after inheriting the land, Elizabeth sells the property in 2013 for $200,000, which of the following statements correctly summarizes the potential federal tax consequences to Elizabeth?

A. Elizabeth's gain will be zero because she is Harry's sole heir.

B. Eizabeth will be required to recognize a gain of $200,000 even though she is Harry's sole heir.

C. Ellizabeth's gain will be $150,000

D. Elizabeth's gain will be $100,000.

4. The disclaimer of an IRA by the surviving spouse can allow tax-deferred growth of the underlying assets over a much longer period of time because:

A) the minimum required distributions will be based on the life expectancies of the contingent beneficiaries likely to be much younger than the surviving spouse.

B. his technique avoids the generation-skiping transfer tax.

C The assets may be spread between beneficiaries

D> younger beneficiaries are taxed at lower rates than spouse

5. In a community property state

I. Half of the property belongs to the surviving spouse and is typically not subject to the "pour over" provisions of the will

II. Property held with a spouse in joint tenancy with right of survivorship will pass to the surviving spouse, regardless of provisions in decedent's will

III. Couples do not have separate property

a. I & III

b. I II & III

C. II & III

D. I & II

6. The principal advantage of using a GRAT or GRUT is to:

a. Remove property from the grantor's estate if the grantor dies during the trust term.

b. provide discretionary distributions during the trust term

c. make gifts which qualify for the annual exclusion

d. obtain a discounted value for the remainder trust

7. The following statement best describes the primary characteristic of what type of life insurance?

This type of life insurance resembles a traditional whole life policy with two major distinctions: 1) Neither the death benefit nor the surrender value payable during lfie are guaranteed. 2)The policy-owner, not the insurance company allocates the premium, after certain deductions are made to a sub-account held by the insurance company.

a. survivorship insurance

b. endowment insurance

c. universal life

d. variable life

8. Colby is actively involved with supporting his alma mater. In January, Colby contributed $11,000 of highly appreciated securities, $20,000 cash to an Endowment Appeal, and 100 hours of his time normally billed at $200/hour. If no further charitable contributions are made for the rest of the year, what is the total value of Colby's charitable contributions?

A. 21000

B. 31000

C. 51000

D. Need AGI to know

9 .Which of the following is not a valuation discount allowable for limited partnership interests?

A. Time value of money

B. Built In Capital Gains

C. Lack of Marketability

D. Lack of Control

10. Unmarried couples may use of all of the following tax advantages except:

A. 195000

B. 0

C. 150000

D. 325000

11. Unmarried couples may use of all of the following tax advantages except:

A. Split Gifts

B. Annual Gift Exclusions

C. Payment of Educational Expenses

D. Bypass Trusts

12. For gift and estate tax purposes, the present value of future payments determines the fair market value of all but which of the following:

A private annuity.

B. Life Estate

C. A listed Stock

D. A remainder Interst

13.  joint return may be filed for a decedent and surviving spouse for the year of death even if the surviving spouse remarries before the end of the year. True or False