1. Sometimesalsoknownastransactiontaxes,Federalgiftand estatetaxesareexcisetaxes.
a. True
b. False
2. Alifetimetransferthatissupportedbyfullandadequateconsiderationisnotagift.
a. True
b. False
.
3. Oneof thereasons theestate taxwas enactedwas toprevent theavoidance ofthe gifttaxby themaking of
deathbed gifts.
a. True
b. False
4. Atonepoint,thetaxratesapplicabletotransfersbygiftwerelowerthanthoseapplyingtotransfersbydeath.
a. True
b. False
5. Some statesimposeinheritancetaxes,but theFederaltaxsystemdoes not.
a. True
b. False
6. Anestate taxis ataxontherightofanheirtoreceivepropertyonthedeathoftheowner.
a. True
b. False
7. A majority of states currently do not impose any tax on transfers by death.
a. True
b. False
8. In some cases, the Federal gift tax can be imposed on someone other than the donor.
a. True
b. False
9. Manuel, a citizen and resident of Argentina, makes a gift to his children of a ranch located in Colorado. Manuel will be subject to the U.S. gift tax.
a. True
b. False
10.Kim, a resident and citizen of Korea, dies during an operation at the Mayo Clinic in Rochester (MN). Because Kim died in the U.S., he will be subject to the Federal estate tax.
a. True
b. False
11.Paul, a U.S. citizen, will avoid the Federal estate tax if he becomes a Canadian resident and owns no property located in the U.S. at the time of his death.
a. True
b. False
12.Becky made taxable gifts in 2000, 2010, and 2013. In computing the gift tax on the 2013 gift, she must consider all of the prior taxable gifts.
a. True
b. False
13.ForFederal estatetax purposes,the grossestate cannotinclude propertythe decedentnolonger owns.
a. True
b. False
14.ForFederal estatetax purposes,thegross estatedoesnot includepropertythat willpassto asurvivingspouse.
a. True
b. False
15.Forboth theFederalgift andestate tax,adeductionisallowedforcertaintransferstoaspouse.
a. True
b. False
16.Inthepast,the amountoftheunified taxcreditalwayshas beenthesame forbothtransfersby giftandtransfersbydeath.
a. True
b. False
17. For Federal estate and gift tax purposes, the exemption equivalentis the same thing as the exclusion amount.
a. True
b. False
18.If thevalue ofthe grossestate islower onthe alternatevaluation datethan onthe dateof death,the dateof deathvaluationcannot beused.
a. True
b. False