17.Which of the following describes joint and survivorship life insurance?

17.Which of the following describes joint and survivorship life insurance?

1.It is generally not includible in any insured's gross estate, if owned in an ILIT.

2.It can provide liquidity to pay estate taxes at the death of the second insured.

3.It pays a partial benefit at the death of the first to die (administrative and estate taxes) with the remainderpaid in full at the second death.

4.Premiums are usually less expensive than for individual policies on each of the two insureds for thesame face amount.

a.1 and 2.

b.3 and 4.

c.1, 2 and 4.

d.1, 2, 3 and 4.

18.Emma , a widow, died. She had made no previous lifetime taxable gifts and she died with a gross estate of$11,200,000, consisting solely of a diversified portfolio of publicly traded, income-producing stocks. Her debts were$75,000 and estate administrative expenses amounted to $50,000. Which of the following post-mortem techniquesshould Emma 's executor consider electing?

a.The alternate valuation date.

b.Deduct estate administrative expenses on the estate's fiduciary income tax return.

c.Pay estate taxes under IRC Section 6166.

d.Use a Section 303 stock redemption.

19.Jack and his wife, Carol, were in an auto accident. Carol died three weeks before Jack did. His gross estate was $6.2million. One of the major assets in his estate was closely held stock in an equipment leasing firm (C corporation)with which rapidly appreciating equipment was purchased. His estate had unsecured debts of $400,000 andadministrative expenses of $75,000. His will allocates his estate to his children in equal shares. Which post mortemplanning techniques might benefit Jack's estate?

1.The alternative valuation date.

2.A Section 303 stock redemption.

3.The QTIP election.

4.Special use valuation.

5.Installment payment of estate taxes.

a.3 only.

b.2 and 5.

c.4 and 5.

d.1, 3 and 4.

20.Which statement(s) is/are true for Generation Skipping Transfer Tax (GSTT)?

1.Applies to transfers to persons who are two generations or more lower than the transferor.

2.There are no exceptions.

3.There is a $11,200,000 lifetime exemption in 2018 for GSTT.

4.Transfers qualifying for gift tax annual exclusion are also excluded from GSTT.

Choose the answer(s) which is/are most correct:

a.4 only.

b.1 and 4.

c.2 and 3.

d.1, 3 and 4.