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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.3 Estate Tax Deductions  >  1.3.1 Estate Tax Overview  >  Basic Quiz

Basic Quiz - 1.3.1 Estate Tax Overview

1. When a person dies with a taxable estate, the surviving spouse and other heirs must pay the federal estate tax, since they receive the cash and property from the estate.
           
2. The estate tax rates are lower for distributions to family as opposed to distributions to unrelated persons. This policy reflects Congress's desire to promote family.
           
3. A properly created living trust will not be included in the decedent's estate for estate tax purposes.
           
4. Under state law, IRAs, life insurance and joint tenancy property pass to other persons without having to go through the probate process.
           
5. A decedent's gross estate shall include the value of all property, real or personal, tangible or intangible, wherever situated.
           
6. A farm operated by a family may be entitled to a reduced valuation for estate tax purposes.
           
7. As a general rule, life insurance policies are not subject to estate taxes.
           
8. The value of a Charitable Remainder Trust (CRT) that pays to the donor and any other person is includable in the estate tax calculation.
           
9. If a person is terminally ill, then he or she cannot use the mortality tables prescribed by the Tax Code.
           
10. Any gift taxes paid within five years of death are added back into the gross estate.