2104. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #1 Sometimes also known as transaction taxes Federal gift and estate taxes are excise taxes. a. True b. False 2105. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #2 A lifetime transfer that is supported by full and adequate consideration is not a gift. a. True b. False 2106. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #3 One of the reasons the estate tax was enacted was to prevent the avoidance of the gift tax by the making of “deathbed gifts.” a. True b. False 2107. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #4 At one point the tax rates applicable to transfers by gift were lower than those applying to transfers by death. a. True b. False 2108. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #5 Some states impose inheritance taxes but the Federal tax system does not. a. True b. False 2109. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #6 An estate tax is a tax on the right of an heir to receive property on the death of the owner. a. True b. False 2110. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #7 A few states impose both an estate tax and an inheritance tax. a. True b. False 2111. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #8 In some cases the Federal gift tax can be imposed on someone other than the donor. a. True b. False 2112. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #9 José a citizen and resident of Panama makes a gift of ExxonMobil stock to his children. Because ExxonMobil is a U.S. corporation José will be subject to the U.S. Federal gift tax. a. True b. False 2113. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #10 Kim a resident and citizen of Korea dies during an operation at the Mayo Clinic in Rochester (MN). Because Kim died in the U.S. he will be subject to the Federal estate tax. a. True b. False 2114. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #11 Paul a U.S. citizen will avoid the Federal estate tax if he becomes a Canadian resident and owns no property located in the U.S. at the time of his death. a. True b. False 2115. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #12 Becky made taxable gifts in 1974 2010 and 2011. In computing the gift tax on the 2011 gift she must consider all of the prior taxable gifts. a. True b. False 2116. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #13 For Federal estate tax purposes the gross estate may include property the decedent does not own. a. True b. False 2117. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #14 For Federal estate tax purposes the gross estate does not include property that will pass to a surviving spouse. a. True b. False 2118. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #15 For both the Federal gift and estate tax a deduction is allowed for certain transfers to charity. a. True b. False 2119. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #16 In the past the amount of the unified tax credit has been the same for both transfers by gift and transfers by death. a. True b. False 2120. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #17 If the value of the gross estate is lower on the alternate valuation date than on the date of death then the alternate valuation must be used. a. True b. False 2121. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #18 For Federal estate and gift tax purposes the exclusion amount is the same thing as the exemption equivalent. a. True b. False 2122. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #19 Under the alternate valuation date election each asset in the gross estate is valued at the lesser of the date of death value or six months thereafter. a. True b. False 2123. CHAPTER 18—THE FEDERAL GIFT AND ESTATE TAXES Question TF #20 Daniel’s will provides that all of his property passes to a trust life estate to his wife remainder to charity. If Daniel’s executor does not make a QTIP election the use of the alternate valuation date is possible. a. True b. False
