Estate Planning Practice Exam Flashcards Preview

CFP Review > Estate Planning Practice Exam > Flashcards

Flashcards in Estate Planning Practice Exam Deck (22)
Loading flashcards...

Do JTTEN and TBE allow for management of rental properties in the cash of someone's physical or mental incapacity?



add will clauses

from text


For someone traveling that wants to grant a POA; what type of powers should it include? Why?

Springing, Durable, Limited; because it only springs during travel, the power doesn't allow the holder to appoint property to himself an by limiting the power it keeps it out of the holders estate, unlike a GPOA


Does a TIC have a survivorship feature?



What types of ownership are for married couples?

TBE, Comm Prop


Does separate property become community property if a couple moves from a common law state to a community property state?

Generally, no


Can couples living in a comm prop state elect to treat separate property as comm prop?



How is gifted property treated in a community property state?

As separate property unless person elects to treat as comm prop or comminges the assets


How are life insurance proceeds treated for gross estate and probate estate?

Included in gross estate, not included in probate estate


How does the contribution rule apply to JTWROS for married and unmarried couples?

Married automatically assumes 50/50, unmarried depends on contribution


If Crystal makes a loan to Holly with a home as collateral, can Holly deduct the imputed intereset on her income tax return?



when does a contribution to a revocable trust require filing a gift tax return?

when the trust has current beneficiaries, e.g. Joelle creates a revocable living trust and names her son as an income beneficiary who receives an income distribution


When is an interest free loan not subject to gift tax?

When it is below $10,000 it meets the exclusion from imputed interest rules.


Is gift splitting required for community property assets?

No, gifts are deemed to be made 50% by each spouse.


What are the 3 year assets for gross estate

  • Life insurance within 3 years
  • Gift tax paid within 3 years


If you gift an asset and retain access and maintain property what happens at death?

Included in gross estate


  • If a person dies holding a note receivable, how is it handled for the gross estate?
  • What affects the valuation?
  • What if the note is forgiven in the will?

  • FMV of note plus accrued interest at DOD
  • Interest rate, maturity, holder's ability to pay
  • Deemed a specific bequest and the fair market value of the note is still included in decendent's gross estate.


What is the Estate Formula

Gross Estate


Adjusted Gross Esate


Taxable Estate

+Post 1976 Gifts

Tentative Tax

Credits (previous gift tax, unified credit, etc.)

Federal Estate Tax Liability


What is the adjusted buyer's basis in a Private Annuity?

The sum of all payments paid.


What is the buyer's adjusted basis in a SCIN?

The FMV of the property at the date of the sale (regardless of the number of payments made by the seller)


How do you calculate the taxable gift of a GRAT?

The value of the property contributed less the value of the annuity retained.


How do you calculate the basis of loss property sold to a charity?

Calculate the loss percentage

Apply the percentage to the adjusted basis which equals the new basis