Question: 31
Which of the following statements concerning revocable trusts is correct?

A – The transfer of properly to a revocable trust is typically motivated by non tax reasons.
B – A transfer of property to a revocable trust is treated as a completed gift.
C – A transfer of income-producing properly to a revocable trust will result in favorable income tax
Exam Name: Fundamentals of Estate Planning test
Exam Type: American College
Exam Code: HS330 Total Questions: 400

treatment for the grantor. D – Property of a revocable trust will be included in the grantor’s probate property.

Answer: A
Question: 32
A man recently died with only probate assets. Under the terms of his will, he left his entire probate estate out right to his wife. The following are relevant facts concerning the estate:
Gross estate $2,400,000 Estate administration expenses 85,000 Debts of decedent 100,000 Allowable funeral expenses 10,000
The amount of the allowable marital deduction is
A – $2,205,000 B – $2,215,000 C – $2,305,000 D – $2,315,000

Answer: A
Question: 33
A wife makes outright gifts of $40,000 to her son this year, and her husband agrees to split the gifts with her. Which of the following correctly states the amount of the taxable gifts?

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