CEA Taxation & Legal Considerations 4

Question 1

The generation-skipping transfer (GST) tax applies when assets pass to a 'skip person.' Which of the following is a skip person?

Accepted Answer

The transferor's grandchild

Answer

A skip person is generally a natural person at least two generations below the transferor, such as a grandchild.

Question 2

A decedent owned a vacation home with a spouse as joint tenants with right of survivorship (JTWROS). How much of the property's FMV is included in the decedent's gross estate?

Accepted Answer

50%, regardless of contribution

Answer

For property held as JTWROS between spouses, IRC § 2040(b) includes exactly 50% in the first spouse's gross estate regardless of who paid for it.

Question 3

Which of the following transfers triggers the three-year lookback rule that could pull the asset back into the gross estate under IRC § 2035?

Accepted Answer

Relinquishment of a retained life estate within 3 years of death

Answer

IRC § 2035 recaptures transfers made within three years of death where the decedent had previously retained § 2036–2038 interests such as a life estate.

Question 4

A surviving spouse inherits an IRA. Which option is unique to spousal IRA beneficiaries and not available to non-spouse beneficiaries?

Accepted Answer

Rolling the inherited IRA into their own IRA

Answer

Only a surviving spouse can roll an inherited IRA into their own IRA, effectively treating it as their own account and deferring RMDs until their own age-73 trigger.

Question 5

Under the SECURE 2.0 Act, the required beginning date for required minimum distributions (RMDs) from most retirement accounts is age:

Accepted Answer

73

Answer

SECURE 2.0 moved the RMD starting age to 73 for individuals who turn 72 after December 31, 2022, with a further increase to 75 scheduled for 2033.

(CEA) Certified Estate Advisor Practice Test

(CEA) Certified Estate Advisor Practice Test

CEA Taxation & Legal Considerations 4