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A wife makes outright gifts of $40,000 to her son this year, and her husband agrees to split the gifts with her. Which of the following correctly states the amount of the taxable gifts?

A. Wife $9,000, husband $9,000

B. Wife 0, husband $18,000

C. Wife $18,000, husband 0

D. Wife $19,000, husband $19,000

A taxable gift has been made in which of the following situations?

1.

A father manages his disabled son's business for a year without compensation since a replacement manager would have cost $25,000.

2.

A father verbally promises his 21-year-old daughter that he will give her his antique Mercedes when she graduates from college next year.

A. 2 only

B. Neither 1 nor 2

C. Both 1 and 2

D. 1 only

Which of the following statements concerning the generation-skipping transfer tax (GSTT) is correct?

A. The GSTT rate applicable to a transfer depends upon the amount of the gift.

B. The lifetime exemption shelters a maximum of $1 million of transfers to grandchildren from GSTT for the current year.

C. Tuition payments made by a grandparent directly to a university for a grandchild's education are exempt from GSTT.

D. The annual exclusion against GSTT shelters gifts by a grandparent to a trust benefitting multiple grandchildren.

All the following powers held by the grantor of an irrevocable trust will cause the trust assets to be brought back into the estate of the grantor EXCEPT the power to

A. designate who shall enjoy the trust income

B. add principal to the trust

C. change the trust remainderpersons

D. terminate the trust

The Decedent, T, died this year. The facts concerning T estate are:

-Gross estate $2,700,000

-Marital deduction 900,000

-Charitable deduction 110,000

-Gifts made after 1976 130,000

-

State death taxes payable 165,000

A.

$1,395,000

B.

$1,525,000

C.

$1,655,000

D.

$1,285,000