How are claims against a decedent’s estate discovered by an executor? Choose the correct.a. Public notice must be printed in an appropriate newspaper to alert all possible claimants.b. The executor waits for nine months until all possible bills have been received.c. The executor directly contacts all companies that the decedent did business with.d. Claims the estate is to pay are limited to all of the bills received but not paid prior to the date of death.

How are claims against a decedent’s estate discovered by an executor? Choose the correct.a. Public notice must be printed in an appropriate newspaper to alert all possible claimants.b. The executor waits for nine months until all possible bills have been received.c. The executor directly contacts all companies that the decedent did business with.d. Claims the estate is to pay are limited to all of the bills received but not paid prior to the date of death.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 6BCRQ

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Which of the following claims against an estate does not have priority? Funeral expenses because the amounts incurred are usually at the discretion of family members. Medical expenses associated with the decedent’s last illness. The costs of administering the estate. Unpaid rent on the decedent’s home if not paid for the three months immediately prior to death.
Which of the following claims against an estate does not have priority? Choose the correct.a. Funeral expenses because the amounts incurred are usually at the discretion of family members.b. Medical expenses associated with the decedent’s last illness.c. The costs of administering the estate.d. Unpaid rent on the decedent’s home if not paid for the three months immediately prior to death.
As the legal representative of your sister's estate, you would like to prepare an optional return for income from rights or things. Which of the following sources of income would you not include on the rights and things return? a) Interest from a savings account at a chartered bank earned prior to death. Uncashed matured bond coupons. c) Harvested farm crops. b) Unpaid dividends declared before d) the day the person died but receivable after her death.
One of the following is deductible as claim against the estate An obligation contracted by the decedent one day before he died An obligation of the decedent which prescribed while the decedent was still alive An obligation which was not reduced in writing under the Statutes of Fraud An obligation which shall be paid by the heirs.
First Statement – The heirs are allowed to withdraw from the decedent’s bank account withoutpresenting proof of payment of the estate tax, i.e., eCAR issued by the CIR or his duly authorizedrepresentative, provided the withdrawal will be subjected to a final withholding tax of six percent(6%)oftheamount tobewithdrawn.Second Statement - Cash in bank, withdrawn within 1 year from the death of the decedent, and subjected to the 6% withholding tax, is nolonger required to be added in the grosse state in the course of filing the estate tax return. a. True,True b. True,False c. False,False d. False, True
The executor of Rose Shield’s estate listed the following properties (at fair value): Prepare journal entries to record the property held by Ms. Shield’s estate and then each of the following transactions that occur in the months following the decedent’s death: Claims of $80,000 are made against the estate for various debts incurred before the decedent’s death. Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death. Ordinary repairs costing $6,000 are made to the rental property. All debts ($80,000) are paid. Stocks recorded in the estate at $16,000 are sold for $19,000 cash. (Rental income of $14,000 is collected. Of this amount, $2,000 had been earned prior to the decedent’s death. (7) Cash of $6,000 is distributed to Jim Arness, an income beneficiary. The proceeds from the life insurance policy are collected and the money is immediately distributed to Amanda Blake as specified in the decedent’s will. Funeral expenses…
An insured is purchasing a Building and Personal Property Coverage Form (BPP) to cover her business. She asks the agent to explain how her property will be valued in the event of a loss. Which one of the following statements made by her agent accurately describes how the covered property will be valued in the event of loss? The insurer is obligated to pay replacement cost regardless of whether or not the property has actually been repaired or replaced. The insurer is obligated to pay the cost to replace the damaged or destroyed property with new property of like kind and quality without any deduction for depreciation or obsolescence. Insurers underwrite the coverage carefully because some items that can be difficult to value, such as manuscripts, works of art, antiques, and rare articles, are covered for replacement cost. If the insured elects to accept an ACV claim settlement, the insured is barred from later requesting payment of replacement cost.
Assuming that a decedent left no valid last will and testament, which one of the following assets will pass by the laws of intestate succession? A) A money market account at his bank that was held in the decedent’s name that was payable on death (POD) in favor of his spouse B) A life insurance policy on the decedent/grantor’s life placed into an irrevocable life insurance trust (ILIT) for the benefit of the decedent’s children two years prior to the decedent’s death C) Assets placed in an inter vivos irrevocable trust in which the decedent/grantor was the sole income beneficiary and the decedent’s children were the remainder beneficiaries D) Assets held by the decedent and his or her spouse as community property in a community property state that were designated community property by a nuptial agreement
Mr Lee owns a residential property in Hong Kong. During the year ended 31 March 2021, Mr Lee received the followings from the tenant: (1) Rent: $240,000 ($20,000 x 12) (2) Refundable deposit: $20,000 (3) Management fee: $12,000 ($1,000 per month). For the sake of convenience the tenant paid the management fee to the management office through Mr Lee. Based on the above information, the net assessable value of the above property for the year of assessment 2020/21 is: a. $192,000. b. $185,600. c. $201,600. d. $208,000.
A couple applied for a loan to finance the purchase of a new home. What federal act was created to ensure that they have knowledge of all closing costs? a. fair credit reporting act b. equal credit opportunity act c. uniform settlement act d. real estate settlement procedures act
The executor of Gina Purcell’s estate has recorded the following information: Debts of $17,000 still remain to be paid. The Dell shares have been conveyed to the appropriate beneficiary. Assume that Ms. Purcell’s will stated that all executor fees are to be paid from principal. Prepare an interim charge and discharge statement for this estate.
These statements are presented to you for evaluation:Statement I – In order that a property previously taxed may be claimed as a deduction from the gross estate, such property must have been acquired by the present decedent either by gratuitous or onerous title within five years prior to his death.Statement II – When the exclusive property of the decedent was mortgaged to secure a loan obtained by the decedent for the education of the legitimate children of the spouses, the mortgage debt shall be a deduction from the exclusive properties of the decedent.In your evaluation of the foregoing statements: Group of answer choices Both statements are false. Only Statement I is true. Both statements are true. Only Statement II is true.