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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.3 Estate Tax Deductions  >  1.3.7 Zero Estate Tax Planning  >  Basic Quiz

Basic Quiz - 1.3.7 Zero Estate Tax Planning

1. It is possible for families to transfer large amounts of wealth through to other family members without paying any gift or estate taxes.
           
2. Under the Tax Relief Act of 2001, the federal estate tax exclusion remained the same from 2001 to 2011.
           
3. A successful inheritance plan is one that makes the child a "better person."
           
4. Based on the experience of one estate tax attorney, the average time it takes for a child to make a significant expenditure after receiving a large inheritance is two years.
           
5. An effective inheritance plan will incorporate distributions to children in two lump sums.
           
6. Gifts during life without taxation can be accomplished by using the annual gift exclusion.
           
7. Testamentary charitable remainder unitrusts (CRUTs) and testamentary charitable lead trusts (CLTs) are excellent vehicles to accomplish layer three and four transfers.
           
8. An excellent way to get a "double discount" for estate tax purposes is to combine a FLP or LLC with a CLT.
           
9. Zero estate tax plans with IRAs are not possible since IRAs are frequently subjected to two layers of tax.
           
10. The "tandem trust" plan incorporates the use of a testamentary CRT and a testamentary CLT.