Estate Planning Case Questions Part 1 1.1 Which of the following is a consequence of the way in which the Ferris' home is titled? A. Either spouse can dispose of his or her interest will by at death. B. If Mary is the first to die, no portion of the home will be included in her probate estate. C. At the first death, there is a full step-up in basis for the property. D. If Fred contributed all of the money to purchase the home, the entire value is included in his gross estate at his death. 1.2. Which of the following statements describes the effect of the titling of the automobile parts supply business interest? A. Mary must consent to any sale or other disposition of the interest. B. If Fred is the first to die, no portion of the business interest will pass through probate. C. At Fred's death, one-half of the value of the business interest will be included in his gross estate. D. If Fred dies today, there will be a full step-up in basis for the business interest . 1.3. If Fred dies today, what is the amount of his probate estate? A. $160,000 B. $251,000 C. $10,000,000 D. $10,216,000 1.4. If Mary dies today, how much is her probate estate? A. $0 B. $36,000 C. $110,000 D. $250,000 1.5. Which of the following is a correct description of Fred’s will? A. Joint will B. Simple will C. Pour-over wi1l D. Mutual will 1.6. Under the current arrangements, which of the following is Fred able to change without probate court involvement if Mary becomes incapacitated? A. Whole life policy B. Residence C. Value fund D. Cash and cash equivalents 1.7. Under the current arrangements, if Mary were to lapse into an irreversible coma, which of the following is the most likely tool Fred would use to deal with medical issues for her? A. Living will B. Health care power of attorney C. Durable power of attorney D. The courts 1.8 lf Fred gives Ted $8,000 for Ned's benefit, which of the following is correct? A. The gift will adversely affect Ned's eligibility for public benefits. B. Ted's wife Maria will be entitled to 50%, due to state property laws. C. Ned will need to cosign any check given to Ted. D. The gift will qualify for the annual exclusion. 1.9. Fred and Mary are contemplating a family gifting program of some magnitude. Which of the following is the most legitimate rationale for a gifting pattern? A. Gifts of annual exclusion amounts to the children are inappropriate because the unlimited marital deduction eliminates the federal estate tax. B. Gifts directly to Ned are suitable, based on need. C. Gifts to Ted are appropriate to remove the future appreciation for their estates. D. Gifts to the daughters would serve to enhance their self-motivation. 1.10. Which of the following would constitute a generation-skipping transfer if it was made today? A. A direct gift from Fred to Ned's Uniform Transfers to Minors Act account, using the value.