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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Trusts & Fiduciary Arrangements | 20% | - Revocable and irrevocable trusts - Generation-skipping transfer tax (GSTT) - Specialized trust structures - Trust income taxation |
| Topic 2: Federal Estate Tax System | 25% | - Marital and charitable deductions - Credits and tax computation - State death taxes and basis adjustments - Gross estate inclusion rules |
| Topic 3: Federal Gift Tax System | 20% | - Exclusions, exemptions, and valuation rules - Gift tax calculation and strategies - Taxable gifts and filing requirements |
| Topic 4: Advanced Planning Strategies | 15% | - Planning for incapacity and special needs - Business succession planning & buy-sell agreements - Life insurance in estate planning - Charitable giving techniques |
| Topic 5: Estate Planning Process & Legal Foundations | 20% | - Probate process and non-probate transfers - Property ownership forms and titling - Objectives and ethical considerations - Wills, powers of attorney, and advance directives |
A father and son have been farming land owned by the father for the past 12 years. Just prior to his death, the father was offered $900,000 for his farm because of its possible use as a shopping center. The son would like to continue to farm the land if it can be included in his father's estate at its current use value. Additional facts are:
1.Average annual gross rentals from nearby farms of similar acreage are $36,000.
2.Average annual state and local real estate taxes on the farm are $4,000.
3.The interest rate for loans from the Federal Land Bank is 8 percent.
For federal estate tax purposes, the farm method valuation formula would result in a current use value for the farm of
Which of the following statements concerning ownership of property held in trust is (are) correct?
1.The legal owner of property held in trust is a trustee.
2.The equitable owner of property held in trust is a beneficiary.
All the following statements concerning an estate for a term of years are correct EXCEPT:
A widower dies leaving a net probate estate of $300,000. At the time of his death, his descendants are as follows:
*A son, Joe, who has no children;
*A deceased daughter, Mary, whose two children, Irene and Sally, survive; and
*A daughter, Anne, who has one child, Harry
Assuming that the widower's will provides for the distribution of his assets in equal shares to his children, per stirpes, which of the following correctly states the amounts each descendant will receive?
All the following statements concerning qualification of property for the federal estate tax marital deduction are correct EXCEPT:
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