American College Exam HS330 Topic 1 Question 93 Discussion

Actual exam question for American College's HS330 exam

Question #: 93
Topic #: 1

All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:

AA life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.

BThe amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.

CAn estate may deduct the value of the remainder interest in a charitable remainder trust.

DThe amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.

Show Suggested Answer

Suggested Answer: D

by Arthur at Jul 17, 2024, 04:57 PM

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Karan

4 months ago

Hey, as long as I can deduct my collection of rare estate-tax-themed stamp collections, I'm happy!

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Whitley

4 months ago

Alright, let's keep this lively but professional, folks. No need to pull any creative estate-planning stunts here, eh?

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Jutta

2 months ago

D) The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.

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Janae

2 months ago

C) An estate may deduct the value of the remainder interest in a charitable remainder trust.

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Clay

2 months ago

B) The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.

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Lemuel

3 months ago

A) A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.

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Mignon

4 months ago

Hmm, I'm not sure about this one. I guess I'll have to go with option C, since it seems the most straightforward.

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Mammie

4 months ago

This is a tricky one, but I think option B is the correct answer. The deduction is reduced by any taxes and administrative expenses chargeable against the bequest.

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Wilbert

3 months ago

Yes, that's right. It's important to consider those factors when calculating the charitable deduction.

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Rosio

3 months ago

I think option B is correct, the deduction is reduced by taxes and expenses.

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Craig

4 months ago

Hmm, I see your point. Let's wait for more opinions before deciding.

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Michell

4 months ago

I agree with Stevie, D makes more sense because it sets a limit on the deduction.

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Craig

5 months ago

But A seems more logical, as it talks about a specific time frame.

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Stevie

5 months ago

I disagree, I believe the answer is D.

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Yuki

5 months ago

I agree with option D. The amount of the charitable deduction is limited to 50% of the decedent's adjusted gross estate.

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Laurel

3 months ago

So, the estate can't deduct more than half of the adjusted gross estate for charitable contributions.

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Hoa

3 months ago

That's correct. The deduction cannot exceed 50% of the estate.

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Frederica

4 months ago

I agree with option D. The amount of the charitable deduction is limited to 50% of the decedent's adjusted gross estate.

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Shayne

4 months ago

I think option A is incorrect. A life insurance policy gifted to a charity less than 3 years before death does not qualify for a charitable deduction.

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Gilma

4 months ago

That's correct. The estate may deduct the value of the remainder interest in a charitable remainder trust.

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Celeste

4 months ago

I agree with option D. The amount of the charitable deduction is limited to 50% of the decedent's adjusted gross estate.

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Option A is incorrect. A life insurance policy assigned to a charity less than 3 years before death does not qualify for the deduction. The policy needs to be assigned at least 3 years prior to death.

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Gearldine

4 months ago

Option A is incorrect. The policy needs to be assigned at least 3 years prior to death.

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Cherri

4 months ago

A) A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.

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Craig

5 months ago

I think the answer is A.

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American College Exam HS330 Topic 1 Question 93 Discussion

Contribute your Thoughts:

Karan

Whitley

Jutta

Janae

Clay

Lemuel

Mignon

Mammie

Wilbert

Rosio

Craig

Michell

Craig

Stevie

Yuki

Laurel

Hoa

Frederica

Shayne

Gilma

Celeste

Ammie

Gearldine

Cherri

Craig