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1. All the following are steps in calculating a decedent's maximum estate tax marital deduction EXCEPT:

A) Subtract the allowable expenses and debts to determine the adjusted gross estate.
B) Determine the net amount of property in the gross estate that passes to the surviving spouse in a manner qualifying for the marital deduction.
C) Compute the decedent's gross estate.
D) Subtract the applicable exclusion amount available in the year of the decedent's death.

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interest payable to the surviving spouse who has the unrestricted right to withdraw proceeds and with any proceeds not withdrawn payable equally to her children per stirpes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. Which of the following are ways of passing property from a deceased spouse to a surviving spouse so that the property will qualify for the federal estate tax marital deduction?
1.When the surviving spouse receives the property by electing to take against the deceased spouse's will
2.When the surviving spouse receives the property as a consequence of the qualified disclaimer of another beneficiary

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

4. All the following statements concerning a grantor-retained unitrust (GRUT) are correct EXCEPT:

A) The grantor's applicable credit amount may be applied to the gifted remainder interest in the trust.
B) When the trust is created, the grantor makes an irrevocable transfer toremainderperson(s).
C) When the grantor dies during the retained interest term, the estate tax benefits are increased.
D) The transfer of the remainder interest in the trust is a current gift for gift tax purposes.

5. Which of the following statements concerning the gift or estate tax charitable deduction is (are) correct?
1.If the donor retains an interest in property contributed to a qualified charity during lifetime, the value of the property may be included in the donor gross estate.
2.An estate tax charitable deduction is allowed for the full value of property transferred to a qualified charity but only if the property is included in the donor gross estate.

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

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