B a life estate c a remainder interest d a

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HW_Ch._6.pdf

b A life estate c A remainder interest d A reversionary interest 8 A minority from FPLN 460 at Franklin University

6 .   At the time of her death , Kathy owned an annuity with payments that will continue after her death to her beneficiary . What amount of the annuity , if any , will be included in Kathy ’s gross estate ?
a . None .
b . The present value any future payments .
c . The full initial value of the annuity .
d . It depends on whether the annuity is from an IRA , a tax - sheltered annuity , or a qualified plan .
7 .   A partial interest gift includes all of the following except :
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8 .   A minority interest discount may be available when all of the following conditions apply to the holder of a limited partnership interest except :
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9 .   Which is not a common method of reducing the gross estate ?
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10 .   Several years ago , Bill and his sister , Joy , purchased a tract of real property as joint tenants with right of survivorship ( JTWROS ) . Bill contributed $ 50,000 toward the $ 200,000 purchase price and Joy contributed the remaining $ 150,000 . Joy died in the current year , and her will provided that all of her assets pass to her daughter , Cate . The real property was worth $ 1,000,000 on the date of Joy ’s death . The value of Joy ’s interest in the property includible in her gross estate is :
a. $ 500,000 .
b. $ 600,000 .
c. $ 750,000 .
d. $ 800,000 .
Answer:  C.   $ 750,000 .
b.A life estate.c.A remainder interest.d.A reversionary interest.
8.A minority interest discount may be available when all of the following conditions apply to the holder of a limitedpartnership interest except:
9.Which is not a common method of reducing the gross estate?
10.Several years ago, Bill and his sister, Joy, purchased a tract of real property as joint tenants with right ofsurvivorship (JTWROS). Bill contributed $50,000 toward the $200,000 purchase price and Joy contributed theremaining $150,000. Joy died in the current year, and her will provided that all of her assets pass to her daughter,Cate. The real property was worth $1,000,000 on the date of Joy’s death. The value of Joy’s interest in the propertyincludible in her gross estate is:

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