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1. Which of the following statements concerning charitable remainder unitrusts is correct?

A) The remainder interest is paid to the qualified charity after a term of years not greater than 15 years.
B) A fixed percentage of not less than 10 percent of the net fair market value of the trust assets is paid to thenoncharitable beneficiaries.
C) No further contributions may be made to aunitrust after the initial payment.
D) The net fair market value of the trust assets are revalued annually.

2. Which of the following life insurance settlement options will qualify for the federal estate tax marital deduction?
1.Proceeds left to the surviving spouse under the interest option, with interest payable to the surviving spouse who has the unrestricted right to withdraw proceeds and with any proceeds not withdrawn payable equally to her children per stirpes
2.Proceeds left to the surviving spouse under an installment option, with any installments remaining at her death to be commuted and paid to her estate

A) 2 only
B) 1 only
C) Neither 1 nor 2
D) Both 1 and 2

3. An executor elects to value the assets of the estate at the alternative valuation date 6 months after death. Which of the following statements concerning the estate tax value of assets included in this estate is correct?

A) Property that has increased in value since the date of death may be valued at the date of death if the executor so elects.
B) An annuity included in the gross estate that diminishes with the mere passage of time is includible at the date of death value.
C) Property sold before the alternate valuation date is valued at the alternate valuation date.
D) Property distributed under the will before the alternate valuation date is valued at the date of death.

4. Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?

A) A father promises to buy his daughter a condominium when she finishes college.
B) A creditor cancels the promissory note of a recently unemployed friend as a charitable gesture.
C) An individual gratuitously performs valuable services for the benefit of a close friend.
D) A grandmother pays her grandson's $30,000 tuition at an Ivy League university.

5. Which of the following statements concerning the estate tax marital deduction is correct?

A) The marital deduction available to a decedent in a common-law state is equal to one half the adjusted grossestate.
B) The marital deduction available to a decedent in a community-property state is equal to the total amount of community property.
C) The marital deduction available to a decedent in a common-law state is limited to a maximum of $1 million.
D) The marital deduction available to a decedent in a common-law state is equal to the net amount of qualifying property passing to the surviving spouse.

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