Question 1

Which of the following statements concerning executors is correct?

Options :

A : The executor named in the will of a deceased person is automatically authorized to act.

B : All executors must post bonds.

C : The executor must be a licensed attorney in the decedent’s state of domicile.

D :

An executor can be given broad and discretionary powers with respect to the management of the estate.

Answer: D

Question 2

Which of the following statements concerning certain types of property interests is (are) correct? I. The person or entity who has title to the property is the legal owner of the property. II. The person who has the right to all income earned on the property is the beneficial or equitable owner of the property.

Options :

A : l only

B : II only

C : Both l and ll

D : Neither I nor II

Answer: C

Question 3

Many trust instruments provide for the removal of the original trustee. Valid reasons for removing the original trustee include which of the following? I .A shift in trust situs is desirable because of changes in law. II. The beneficiary has moved his or her residence to a distant state.

Options :

A : l only

B : II only

C : Both l and ll

D : Neither I nor II

Answer: C

Question 4

Which of the following statements concerning charitable remainder annuity trusts is correct?

Options :

A : It provides a fixed annuity income interest to a qualified charity.

B : The donor receives an estate tax charitable deduction for the value of the remainder interest.

C : The term of charitable remainder annuity arrangements is limited to 10 years.

D : The interest paid to the charity must be paid at least quarterly.

Answer: B

Question 5

Which of the following statements concerning filing the federal estate tax return is (are) correct? l. The estate tax return must be filed within 9 months of death unless an extension is granted by the IRS. ll. For persons dying this year. an estate tax return must be filed for gross estates plus adjusted taxable gifts that exceed $1.5 million

Options :

A : l only

B : II only

C : Both l and II

D : Neither l nor ll

Answer: C

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