Glendale Community College » Accounting » Accounting 175 - Estate Gift and Trust Taxation » Spring 2021

Accounting 175 - Estate Gift and Trust Taxation » Spring 2021 » Final Exam

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Question #1

After the creation of a trust, title to property placed in the trust passes to at least two persons with the trustee receiving the equitable title and the beneficiary receiving the legal title.

A. TRUE

B. FALSE

Question #2

Probate and estate administration are the only methods of settling an estate.

A. FALSE

B. TRUE

Question #3

Any state in which a decedent held property may impose estate tax on the decedent's estate.

A. FALSE

B. TRUE

Question #4

Death tax payments are assessed against all income brackets, from the poor to the wealthy.

A. TRUE

B. FALSE

Question #5

The money in a Totten trust is a probate asset.

A. TRUE

B. FALSE

Question #6

A person applying for informal appointment does not need to notify any other parties who might have a right to be personal representative.

A. TRUE

B. FALSE

Question #7

The gross estate is the taxable estate.

A. FALSE

B. TRUE

Question #8

If a decedent leaves real property in another state, the paralegal will need to check the foreign state's statutes to determine the qualifications and residency requirements of the ancillary administrator.

A. TRUE

B. FALSE

Question #9

The personal representative is required to give personal notice of informal proceedings to all creditors.

A. FALSE

B. TRUE

Question #10

If an estate includes digital assets and the decendent has left instructions on how to access those assets the personal representative may still be precluded from doing so because of state and /or federal law.

A. TRUE

B. FALSE

Question #11

Which does the personal representative NOT have to file?

A. Federal Sales Tax Return

B. State Individual Tax Return

C. Federal Individual Income Tax Return

D. State Estate Tax Return

Question #12

Which is NOT an essential element of a trust?

A. Real or personal property

B. One or more trustees

C. A sale or gift property

D. One or more beneficiaries

Question #13

The affidavit signed by the personal representative at the end of informal probate proceedings to close the estate and to be discharged must verify all of the following EXCEPT:

A. A copy of the affidavit was mailed to all distributes of the estate.

B. A notice to creditors was published more than six months, before the date of the affidavit.

C. All federal and state taxes have been paid.

D. All assets of the estate have been distributed in full to the persons entitled to them.

Question #14

Which procedure occurs during the final account and closing of the estate phase?

A. The computation and filing of a state inheritance tax return or waiver

B. Notice to creditors

C. The opening of a safe deposit box

D. The hearing on creditors' claims and payment of allowed or approved claims

Question #15

Which is the invalid trust combination?

A. The settlor is also the beneficiary and another person is the trustee

B. The settlor is also the trustee and beneficiary

C. The settlor, trustee and benficiary are three different people

D. The settlor, is also a co-trustee and a co-beneficiary

Question #16

Which is NOT a subcategory of express trusts?

A. Active or passive trusts

B. Inter vivos or testamentary trusts

C. Private or public trusts

D. Implied or non implied trusts

Question #17

A joint federal tax return can be filed for the decedent ONLY if

A. The descendant was employed prior to his/her death

B. The surviving spouse agrees to file a joint return

C. The surviving spouse lives in a different state

D. The surviving spouse remarried before the close of the year.

Question #18

Which is an acceptable method for giving notice of a hearing on a petition to an interested party?

A. Mailing a copy of the notice at least seven days before the time set for the hearing.

B. Publishing the notice in the newspaper every other week for a month if the identity of interested parties is unknown

C. Personally delivering a copy of the notice 14 days prior to the hearing.

D. Publishing the notice in the newspaper at least 14 days prior to the hearing.

Question #19

Which will NOT be issued by the court during the special administration process?

A. Inventory and appraisal of the personal property of the decedent

B. Oder Granting Special Administration

C. Order Approving the final account and report of the special administrator

D. Letters of Special Administration

Question #20

Which is NOT a reason that many people die without a valid will?

A. inheritance tax

B. Income tax

C. Estate tax

D. Gift tax

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