Beneficiaries of a trust must be legal persons and cannot be legally incompetent persons who are unable to enforce their rights.  

Brooke made a gift in 2022 of $1,000,000 for which she paid $200,000 in gift taxes. Brooke died in 2024 leaving assets of $8,000,000 in her estate. How does Brooke’s 2022 gift affect her gross estate?

The difference between a charitable remainder annuity trust (CRAT) and a charitable remainder unitrust (CRUT) is that a CRATs assets must be revalued annually and a CRUT’s assets are only valued once.    

Same facts as the previous question, but Rob died in a skydiving accident before such transfer took place. Which of the following statements is (are) correct concerning the taxation of this transfer? (1) The transfer is subject to the generation-skipping transfer tax. (2) The transfer is subject to the federal gift tax.

Which of the following statements regarding a Crummey trust is false?

All the following statements concerning the generation-skipping transfer tax (GSTT) are correct for 2024 except:

Under which of the following circumstances would a decedent be considered to have died intestate? The decedent handwrote a will but did not sign or date it. The decedent was not of “sound mind” when they signed the statutory will. The decedent failed to prepare a last will and testament.

Viola has been appointed executor of her business partner’s estate. Which of the following statements concerning her role as executor is (are) correct? (1) Viola will have to post a bond unless the decedent’s Will specifically provides to the contrary, or unless all beneficiaries agree that she doesn’t have to post a bond. (2) The court will issue letters testamentary to Viola granting her authority to act on behalf of the estate, if she applies and qualifies.

Tony owned the following property at the time of his death. (1) $500,000 Personal residence titled in fee simple in Tony’s name. (2) $500,000 life insurance policy on Tony’s life. Primary beneficiary is Tony’s brother, Pepe (died 2 years before Tony), contingent beneficiary is “My Estate”. (3) $17,000 car titled JTWROS with Tony’s sister, Gia, who survived him. (4) $400,000 IRA, Primary beneficiary: Gia, survives. What is the value of Tony’s probate estate? (Assume he was not married on his date of death.)

Even if a life insurance policy is held in a trust, the death proceeds are included in the decedent’s gross estate if the insured retained the ability to change beneficiaries.