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Estate Planning Flashcards

7 cards from real CIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Estate Planning flashcards as text

  1. Which of the following is included in a decedent's gross estate?

    Answer: Property over which the decedent held a general power of appointment at death

    Under IRC Section 2041, property subject to a general power of appointment held at death is included in the gross estate.

  2. When may an executor elect the alternate valuation date for estate assets?

    Answer: Only when the election lowers both the gross estate value and the estate tax owed

    The alternate valuation date (6 months after death) is available only if it reduces both the gross estate and the combined estate and GST tax.

  3. A decedent leaves assets to a surviving spouse who is not a U.S. citizen. How can the estate still claim a marital deduction?

    Answer: By leaving the property to a qualified domestic trust (QDOT)

    The unlimited marital deduction generally requires a U.S. citizen spouse unless the property passes to a QDOT.

  4. How does a surviving spouse get the deceased spousal unused exclusion (DSUE) amount under portability?

    Answer: Through an election on a timely filed Form 706 for the first spouse's estate

    Portability must be elected on a timely filed estate tax return (Form 706), even if no estate tax is owed.

  5. When is the federal estate tax return (Form 706) generally due?

    Answer: 9 months after the date of death, with a possible 6-month extension

    Form 706 is due 9 months after death, and an automatic 6-month extension to file is available.

  6. A parent bought stock for $20,000. It is worth $150,000 when the parent dies and leaves it to a child. What is the child's basis?

    Answer: $150,000, its fair market value at the date of death

    Under IRC Section 1014, inherited property generally gets a basis equal to fair market value at the date of death (or the alternate valuation date).

  7. What limit applies to the federal estate tax charitable deduction for bequests to qualified charities?

    Answer: There is no percentage limit; the deduction is unlimited

    Bequests to qualified charities are fully deductible for estate tax, unlike the AGI-based limits on income tax charitable deductions.