Question & Answer: The $500,000 policy proceeds are on Peter's death to his brother, Dominic……

QUESTION 40

Life insurance proceeds will most likely be included in the estate of Peter, a decedent, in which of the following situations?

The $500,000 policy proceeds are payable to an irrevocable insurance trust.

The $500,000 policy proceeds are on Peter’s death to his brother, Dominic.

The $500,000 policy, owned by Peter and insuring his life, was transferred to Peter’s brother a year before his death.

All of the above.

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QUESTION 41

Which of the following is an allowable deduction for federal estate tax purposes?

The $250,000 outstanding mortgage on Queenie’s house which is included in her gross estate.

A $50,000 bequest to Queenie’s alma mater, Fairfield University.

The $10,000 payment of medical expenses incurred by Queenie before her death, but not deducted on the estate income tax return.

All of the above.

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QUESTION 42

The unified transfer tax due at the decedent’s death is computed on what tax base?

The decedent’s gross taxable estate.

The decedent’s gross taxable estate plus total lifetime gifts made after 1976.

The decedent’s gross taxable estate less total lifetime gifts made after 1976.

The decedent’s gross taxable estate plus total lifetime gifts whenever made.

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