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Special-use valuation under 2032A may be elected by the executor for which of the following kinds of property? (1) An art collection sold from the estate within 6 months after death (2) Farmland

Mary is updating her estate planning documents and is worried that the property that her daughter, Sally, will inherit from Mary may disqualify her from receiving certain means-tested government benefits. What type of trust should Mary consider setting up for Sally to receive her inheritance to help preserve such benefits?

John’s net worth is $17,000,000 consisting entirely of his separate property. His wife’s net worth is $200,000, consisting entirely of her separate property. As part of John’s estate plan, he would like to transfer as much property to his children as possible after his wife’s death, while applying as much of his Estate Tax exemption as possible to his estate upon his death. He would also like to ensure that his wife has access to all of his net worth for the rest of her life. Assuming John died in 2024, and assuming his wife is a U.S. citizen, which of the following estate plans would best fulfill his goals:

One of the benefits of setting up a Revocable Living Trust is the potential for reduction of estate and gift taxes.  

Kathi and Darrin are married and own their home together as community property. They purchased the home 17 years ago for $100,000. After many improvements and a surge in the market, the home is now worth $200,000. If Darrin died in 2024 and left his share of the home to his daughter Elizabeth, what is Kathi’s basis in her share of the home?  (Assume no value for homestead right.) 

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.

Nellie recently executed a power of attorney giving Jessie the power to perform certain tasks. Which of the following powers given to Jessie would cause the property to be included in Jessie’s gross estate for federal estate tax purposes?

Louis established a charitable remainder trust which will pay income to him for life and the remainder to a local charity. Which of the following statements concerning the trust is (are) correct? (1) If Louis can make additional contributions, he has created a CRUT. (2) Louis can take an income tax deduction in the year the trust is created for the present value of the remainder interest.

Which of the following is NOT a characteristic of a Crummey trust?

Trey, while still alive, transferred securities valued at $25,000,000 early in 2023 to his favorite grandson, Jake.  Assume that Trey’s son and Jake’s dad, Rob, is still living at the time of such transfer. Which of the following statements is (are) true 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.