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. FALSE

B. TRUE

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. TRUE

B. FALSE

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. FALSE

B. TRUE

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. FALSE

B. TRUE

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. State Individual Tax Return

B. State Estate Tax Return

C. Federal Sales Tax Return

D. Federal Individual Income Tax Return

Question #12

Which is NOT an essential element of a trust?

A. One or more trustees

B. A sale or gift property

C. One or more beneficiaries

D. Real or personal property

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. All federal and state taxes have been paid.

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

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

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

Question #14

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

A. The opening of a safe deposit box

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

C. Notice to creditors

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 trustee and beneficiary

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

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

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

Question #16

Which is NOT a subcategory of express trusts?

A. Private or public trusts

B. Implied or non implied trusts

C. Active or passive trusts

D. Inter vivos or testamentary trusts

Question #17

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

A. The surviving spouse lives in a different state

B. The surviving spouse agrees to file a joint return

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

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

Question #18

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

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

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

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

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

Question #19

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

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

B. Oder Granting Special Administration

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

D. Letters of Special Administration

Question #20

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

A. Income tax

B. inheritance tax

C. Gift tax

D. Estate tax

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