CTA Estate, Gift, and Trust Taxation 1

Question 1

What is the federal estate tax exemption (unified credit) for 2024?

Accepted Answer

$13,610,000

Answer

The federal estate and gift tax exemption is $13,610,000 per individual in 2024.

Question 2

What is the annual gift tax exclusion per recipient for 2024?

Accepted Answer

$18,000

Answer

The annual gift tax exclusion is $18,000 per recipient in 2024, allowing tax-free gifts without reducing the lifetime exemption.

Question 3

Which federal form is used to file the estate tax return?

Accepted Answer

Form 706

Answer

Form 706 (United States Estate Tax Return) is filed by the executor of a decedent's estate when the gross estate exceeds the filing threshold.

Question 4

The step-up in basis at death allows heirs to:

Accepted Answer

Receive inherited assets with a cost basis equal to fair market value at date of death

Answer

Assets inherited from a decedent receive a new cost basis equal to fair market value at the date of death, potentially eliminating built-in capital gains.

Question 5

Which type of trust is included in the grantor's gross estate at death?

Accepted Answer

Revocable living trust

Answer

Assets in a revocable living trust are included in the grantor's taxable estate because the grantor retains the right to revoke or amend the trust.

CTA - Certified Tax Advisor Practice Test

CTA - Certified Tax Advisor Practice Test

CTA Estate, Gift, and Trust Taxation 1