CTFA Estate Planning and Administration 2

Question 1

What is the federal estate tax exemption amount for 2024 per individual?

Accepted Answer

$13.61 million

Answer

$5.49 million

Answer

$10 million

Answer

$12.06 million

Question 2

Which estate planning strategy allows a married couple to effectively double the federal estate tax exemption?

Accepted Answer

Portability election

Answer

Qualified terminable interest property trust

Answer

Charitable remainder trust

Answer

Grantor retained annuity trust

Question 3

A credit shelter trust (bypass trust) is primarily designed to do which of the following?

Accepted Answer

Shelter the decedent's estate tax exemption from the surviving spouse's taxable estate

Answer

Eliminate capital gains taxes on inherited assets

Answer

Protect assets from the surviving spouse's creditors only

Answer

Reduce income taxes owed by trust beneficiaries

Question 4

What is the estate planning benefit of the unlimited marital deduction?

Accepted Answer

Assets passing to a surviving U.S. citizen spouse are fully exempt from estate tax

Answer

Transfers between spouses are free from gift and estate tax only up to the annual exclusion

Answer

Married couples automatically receive a doubled estate tax exemption without any election

Answer

Only assets placed in a QTIP trust qualify for the marital deduction

Question 5

Which valuation date may an executor elect for federal estate tax purposes if it reduces the estate's value?

Accepted Answer

Alternate valuation date (six months after date of death)

Answer

Date of decedent's last birthday

Answer

Date assets are distributed to beneficiaries

Answer

Date the estate tax return is filed

Question 6

Which document is required for a non-U.S. citizen surviving spouse to qualify for the marital deduction?

Accepted Answer

Qualified domestic trust (QDOT)

Answer

Irrevocable life insurance trust (ILIT)

Answer

Charitable lead trust (CLT)

Answer

Special needs trust (SNT)