Which of the following types of partial interests in property may be allowed a charitable deduction for estate tax purposes?
1.A remainder interest in the donor vacation home
2.A testamentary gift of a percentage of a decedent entire interest in property held in trust

• A. 2 only
• B. Neither 1 nor 2
• C. Both 1 and 2
• D. 1 only

All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:

• A. The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.
• B. The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.
• C. An estate may deduct the value of the remainder interest in a charitable remainder trust.
• D. A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.

Examples of terminable interests that are nondeductible for the federal estate tax marital deduction include which of the following?
1.A property interest that would pass to someone else if the surviving spouse remarries
2.A life estate in property that would pass to another person at the death of the surviving spouse

• A. 2 only
• B. Neither 1 nor 2
• C. Both 1 and 2
• D. 1 only

In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his estate. He wants to make certain that if he predeceases his wife the death proceeds will be available to provide income for his wife during her lifetime and to provide for their two children after her death. He would like the policy and/or its death proceeds to be as free of federal gift and estate taxes as possible with respect to both him and his wife. Which of the following courses of action would best accomplish these objectives?

• A. Assign the policy to an irrevocable intervivos trust with five and five powers and designate the trustee to receive the death proceeds
• B. Designate his wife as beneficiary and she will establish a testamentary trust in her will to receive the proceeds at her subsequent death
• C. Assign the policy to his wife who will establish a revocable intervivos trust to receive the death proceeds
• D. Establish a revocable intervivos trust and designate the trustee to receive death proceeds

All the following items of property will be included in a decedent's gross estate for federal estate tax purposes EXCEPT

• A. the value of a gratuitous lifetime transfer in which the decedent retained a reversionary interest on the date of death worth more than 5 percent of the value of the property and which thedonee must survive the decedent to possess
• B. the value of all gratuitous lifetime transfers of property made within 3 years of death
• C. the value of a gratuitous lifetime transfer in which the decedent retained the right for life to receive the income from the property
• D. the value of property subject to a general power of appointment that the decedent possessed at death