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Updated: Sep 10, 2026
Q & A: 400 Questions and Answers
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| Section | Objectives |
|---|---|
| Topic 1: Financial Planning Strategies | - Financial Planning Strategies
|
| Topic 2: Estate Planning Concepts | - Estate Planning Concepts
|
| Topic 3: Tax Laws | - Tax Laws
|
| Topic 4: Legal Principles | - Legal Principles
|
All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:
Correct Answer: A 🗳️
Which of the following statements concerning an installment sale is (are) correct?
1.Some portion of the purchase price must be paid in any one taxable year other than the year of sale.
2.Installments due after the seller's death are excludible from the seller's gross estate.
Correct Answer: A 🗳️
All the following statements concerning revocable trusts are correct EXCEPT:
Correct Answer: B 🗳️
A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. Which of the following statements concerning this action is (are) correct?
1.If the husband dies first, it would be easier to qualify his estate for a Section 303 redemption of his business interest.
2.If the husband dies first, the probate costs of his estate could be increased.
Correct Answer: B 🗳️
Alan, a widower, is a retired executive with substantial assets. He wishes to provide for the financial security of his two grandchildren since their father, Alan's son, has always managed money poorly. This year Alan would like each grandchild to receive a substantial gift. Which of the following statements concerning the generation-skipping transfer tax (GSTT) on these gifts is (are) correct?
1.Federal estate or gift tax will not be imposed if the gift is otherwise subject to the GSTT.
2.Assuming no prior gifts, Alan can gift a cumulative total of (not including the annual exclusion) $1.5 million to his grandchildren without the imposition of the GSTT.
Correct Answer: B 🗳️
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