Question

At the end of the trust term, the ownership of a residence held by a QPRT automatically
reverts back to the grantor. (Points : 0.63)

       True
       False

Maxwell died August 8, 2017. Of the following transfers made during his life, which is
included in his gross estate? (Points : 0.63)

a The transfer of a whole life insurance policy on Maxwell’s life to an ILIT on
September 16, 2013.
b The sale of his term insurance policy to his brother, Donald, for fair market
value on August 12, 2013.
c The transfer of a whole life insurance policy on Maxwell’s life (face value
$150,000) valued at $20,000 to his son on September 16, 2015.
d A gift of $14,000 to Maxwell’s sister on August 7, 2017. No gift tax was due
on the gift.

Transfers to irrevocable trusts are treated as completed gifts and are subject to gift tax. (Points : 0.63)

       True
       False

Answer 1