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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Estate Planning Process & Legal Foundations | 20% | - Objectives and ethical considerations - Probate process and non-probate transfers - Wills, powers of attorney, and advance directives - Property ownership forms and titling |
| Topic 2: Federal Estate Tax System | 25% | - Gross estate inclusion rules - Marital and charitable deductions - State death taxes and basis adjustments - Credits and tax computation |
| Topic 3: Advanced Planning Strategies | 15% | - Life insurance in estate planning - Charitable giving techniques - Planning for incapacity and special needs - Business succession planning & buy-sell agreements |
| Topic 4: Federal Gift Tax System | 20% | - Taxable gifts and filing requirements - Exclusions, exemptions, and valuation rules - Gift tax calculation and strategies |
| Topic 5: Trusts & Fiduciary Arrangements | 20% | - Revocable and irrevocable trusts - Trust income taxation - Specialized trust structures - Generation-skipping transfer tax (GSTT) |
Which of the following statements concerning a general power of appointment is (are) correct?
1.A general power of appointment is a power over property so broad that it approaches actual ownership or control over the property subject to the power.
2.The property subject to a general power of appointment will be includible in the gross estate of the holder of the power if held until death.
Correct Answer: B 🗳️
All the following statements concerning an estate for a term of years are correct EXCEPT:
Correct Answer: D 🗳️
A wealthy individual might consider selling a substantially appreciated property interest in an installment sale for which of the following reasons?
1.To spread the taxable gain inherent in the property over the period of the installments
2.To provide a buyer who lacks the requisite funds for a lump-sum purchase with the ability to finance the acquisition
Correct Answer: B 🗳️
Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?
Correct Answer: D 🗳️
All the following are grounds for contesting a will EXCEPT:
Correct Answer: B 🗳️
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