951Testbank©2012 CCH. All Rights Reserved. Chapter 22Which of the following retained powers is not an “incident of ownership” in a life insurance policy?33. A power to use the policy as collateral for loans not to exceed one-half its cash value.
34. Gift tax paid on a gift made by John two years before his death a. The proceeds of life insurance on John’s life where all incidents of ownership were transferred to an irrevocable b. trust 18 months prior to his death The present value of a joint and survivorship annuity purchased by John’s wife, Frieda c. Property subject to John’s testamentary general power of appointment d. Which of the following items is not includible in the decedent’s gross estate?35. A lump-sum distribution from a qualified profit-sharing plan to decedent’s daughter who elects five-year a. forward averaging A gift of life insurance two years prior to death to decedent’s son b. Unpaid dividends when death occurred prior to the record date c. The widow’s statutory share of the estate under the State Probate Act (in lieu of dower) d. The following is a partial list of relevant items available when filing Wilma Pott’s estate tax return: 36. (1.) Two years before she died, Wilma sold stocks, now worth $90,000, then $65,000, for $30,000, to her son. (2.) Wilma owned a summer house, worth $50,000, in joint tenancy with her sister, Betsy, who paid for it. (3.) Wilma’s home was held in a tenancy by the entirety with her husband, Wilbur, who paid for it, and is worth $150,000. (4.) Wilma’s clothes and shoes are worth $800. From the above, Wilma’s gross estate includes: