The personal representative of a decedent has the duty to file all the following tax returns EXCEPT

• A. the federal estate tax return
• B. the surviving spouse's income tax return for the year of death
• C. the estate's income tax return
• D. the decedent's final income tax return

Which of the following statements concerning federal gift, estate, and income taxes is (are) correct?
1.A taxable gift of income-producing property to a donee automatically transfers income tax liability on the gifted property to the donee.
2.Once part or all of a taxable gift is made to a trust, the property can no longer be includible in the donor gross estate.

• A. Both 1 and 2
• B. 2 only
• C. Neither 1 nor 2
• D. 1 only

In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his estate. He wants to make certain that if he predeceases his wife the death proceeds will be available to provide income for his wife during her lifetime and to provide for their two children after her death. He would like the policy and/or its death proceeds to be as free of federal gift and estate taxes as possible with respect to both him and his wife. Which of the following courses of action would best accomplish these objectives?

• A. Assign the policy to an irrevocable intervivos trust with five and five powers and designate the trustee to receive the death proceeds
• B. Assign the policy to his wife who will establish a revocable intervivos trust to receive the death proceeds
• C. Designate his wife as beneficiary and she will establish a testamentary trust in her will to receive the proceeds at her subsequent death
• D. Establish a revocable intervivos trust and designate the trustee to receive death proceeds

A married man died this year leaving a gross estate of $2,750,000. Some additional facts concerning his estate are:
*Administration expenses and debts $ 150,000
*Marital deduction 750,000
*Applicable credit amount (2005) 555,800
*Applicable exclusion amount (2005) 1,500,000
*State death taxes payable 22,200
Under the Unified Rate Schedule for computing estate taxes if the amount with respect to which the tentative tax to be computed is over $1,000,000 but not over $1,250,000, the tentative tax is $345,800, plus 41 percent of the excess of such amount over $1,000,000. If the amount is over $1,250,000 but not over $1,500,000, the tentative tax is then $448,300, plus 43 percent of the excess of such amount over $1,250,000. If the amount is over $1,500,000 but not over $2,000,000 the tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000. Based on these facts, the net federal estate tax payable is

• A. $147,510
• B. $163,710
• C. 0
• D. $151.490

Which of the following statements concerning ownership of property under a tenancy by the entirety is correct?

• A. It is a form of property ownership that applies only to personal property.
• B. It is a form of property ownership available only to married persons.
• C. The property will be in the probate estate of the first joint tenant to die.
• D. One tenant can freely transfer his or her property interest to a third person.