Fair market value of interest retained by grantor of grat

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Reference no: EM131514759

1. A grantor’s transfer of property to a qualified personal residence trust qualifies for the gift tax annual exclusion because the transfer constitutes a completed gift. True or false

2. ?The annual gift tax exclusion will be useful in sheltering a portion of the transfers to a grantor-retained annuity trust from gift taxes. True or false

3. ?A done of a gift obtains a new basis stepped up to the fair market value of the property at the time of the gift. True or false?

4. ?If a grantor establishes a grantor retained unitrust then she will be able to make additional contributions to the trust in the future years if she so desires. True or false?

5. The fair market value of the interest retained by the grantor of a GRAT is subject to gift tax. True or false?

6. All gain or loss on the sale of property other than capital assets is taxable as ordinary income. True or false?

?7. The stepped-up basis rules apply to assets transferred during lifetime that were brought back into the decedent’s gross estate for valuation purposes because of retained powers held by the decedent at death. True or false

Reference no: EM131514759

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