Which of the following statements concerning the generation-skipping transfer tax (GSTT) is (are) correct?1. An annual exclusion against GSTT will shelter gifts by a grandparent to a trust benefitting multiple grandchildren.2. Tuition payments made directly by a grandparent to a university for a grandchild's education are exempt from GSTT.
Answer(s): D
All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:
Answer(s): B
Many trust instruments provide for the removal of the original trustee. All the following are valid reasons for removal of a trustee EXCEPT:
A father bought stock for $100,000 and gave it to his son when it was worth $300,000. The father paid no gift tax on the transfer. When the son sold the property 2 years after the gift, his income tax basis was
Answer(s): A
A father deeded a house as a gift to his daughter in 1990 but retained the right to live in it until his death. He died this year while still living in the house. The following are relevant facts: The father bought the property in 1980 for $130,000. The fair market value of the property when the gift was made in 1990 was $150,000. The father filed a timely gift tax return but paid no gift tax because of the applicable credit amount. The fair market value of the property at the father's death was $220,000. The daughter sold the property 3 months after her father's death for $220,000. She had a gain of
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