1. Which of the following issues, as Ellen's estate planning specialist, should you not be worried about?

A. Ed leaving Ellen before they are married.
B. Protecting Ellen's assets from Ed's creditors.
C. Avoiding probate if Ellen were to die first.
D. Making sure that Ellen's children and grandchildren share in her estate if she were to pass away.

2. What is the value of Ellen's gross estate?

A. $4,056,500
B. $4,402,300
C. $9,253,000
D. $9,351,000
E. $9,353,200

3. What is the value of Ellen's adjusted gross estate?

A. $4,056,500
B. $9,231,200
C. $9,253,000
D. $9,351,000
E. $9,353,200

4. Please calculate the net tax due, after the unified credit, if Ellen were to pass away today.

A. $0
B. $1,565,200
C. $2,045,800
D. $3,647,000
E. $4,353,200

5. Which of the following recommendations would reduce the value of Ellen's Gross Estate if implemented (provided she lives at least 3 years from implementation)? I. Transfer her life insurance policy into an ILIT II. Establish a 3 year TPPT for the paintings. III. Marry Ed and use the marital deduction

A. I only
B. II only
C. I and II
D. II and III
E. I, II, and III

6. Assume that Ellen does marry Ed. Which of the following estate planning techniques can be used to fully utilize the marital deduction, meet the financial needs of Ed, and ultimately pass assets to Ellen's children and grandchildren?

A. Establish and fund a GST trust.
B. Establish and fund a Q-TIP trust.
C. Re-title her property as JTWROS.
D. Establish and fund a testamentary trust.
E. Either B or C.

7. Ellen has indicated that she would like to leave a legacy for her grandchildren. She would like to pay for college expenses at a private university for her grandchildren. Which of the following gifting techniques can Ellen use today to both meet her objective and to reduce her estate without incurring estate or gift taxes?

A. Transfer assets, valued at the estimated cost of education for four years, into an irrrevocable living trust.
B. Transfer assets, valued at the estimated cost of education for four years, into a Q-TIP trust.
C. Prepay the cost of four years of college directly to her grandchildren.
D. Fund 529 accounts for each of her grandchildren with the maximum allowable contribution (currently 5 times annual exclusion amount).

8. Which of the following is an outcome associated with placing Ed as a co-owner of her assets using JTWROS? (Assume that she does this AFTER they are married.)

A. Ed's creditors may attach her assets.
B. If Ellen were to predecease Ed her legacy wishes may not be followed.
C. Retitling the assets will require Ellen to pay several million dollars in gift taxes.
D. Both A and B are true.
E. A, B, and C are true.

9. Which of the following statements is true? I. If Ellen moves her insurance policy into an ILIT, she may owe gift tax on the transfer. II. If Ellen passes away before exhausting her profit sharing plan assets through RMDs, the balance remaining in the profit sharing plan will constitute IRD. III. Ellen's estate will be eligible for a Section 303 redemption at her death.

A. I only
B. II and III only
C. Both I and II
D. I, II and III
E. Neither II nor III

10. Suppose Ellen makes Ed the income beneficiary of an irrevocable trust. Which of the following powers held by him with respect to the trust will cause all the assets in the trust to be included in his gross estate for federal estate tax purposes?

A. The power to direct the trustee to pay him the greater of 5% of the trust principal or $5,000
B. The power to direct the trustee to use the trust assets to pay his estate taxes.
C. The power to use trust assets for his health, education, support, or maintenance.
D. The testamentary special or limited power to direct the trustee to distribute trust assets to his relatives.