Many trust instruments provide for the removal of the original trustee. Valid reasons for removing the original trustee include which of the following?1. A shift in trust situs is desirable because of changes in law.2. The beneficiary has moved his or her residence to a distant state.
Answer(s): C
In which of the following situations will the grantor be taxed on income from trust property.1. The grantor of a trust gives one of the trust beneficiaries the right to add or delete beneficiaries.2. An adverse party to the grantor holds the power to determine the timing of trust distributions to the beneficiaries.
Answer(s): D
The following are facts concerning a decedent's estate:* Taxable estate $1,800,000* Pre-1977 taxable gifts 100,000* Post-1976 adjusted taxable gifts 150,000* Post-1976 gifts made to a qualified charity 200,000 The tentative tax base of this estate is
Answer(s): B
Items that are deductions from a decedent's gross estate in determining his adjusted gross estate include which of the following?1. Foreign death taxes2. State death taxes
Answer(s): A
All the following trust provisions avoid causing the inclusion of an irrevocable life insurance trust in an insured's gross estate EXCEPT
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