Series 65 Quiz: Evaluate Estate And Gift Taxes

What this quiz covers

This quiz focuses on Evaluate Estate And Gift Taxes, giving you a quick way to practice the rules, question types, and explanations that matter most for Series 65.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. Rely solely on income tax credits to offset estate tax
2. Use portability to preserve a deceased spouse's unused exemption (correct answer)
3. Avoid filing any estate return to automatically claim exemptions
4. Treat all spousal transfers as taxable gifts without exclusions

Question 2

1. Tuition paid directly to an educational institution for a child (correct answer)
2. Cash given to a child to later pay college tuition
3. A below-market loan forgiven without documenting interest
4. A gift of stock exceeding annual exclusion with no reporting

Question 3

1. Unlimited marital deduction generally shelters qualifying spousal transfers (correct answer)
2. Spousal gifts are capped at the annual exclusion only
3. Spousal gifts are always taxable unless made through a will
4. Marital transfers reduce income tax but not gift tax exposure

Question 4

1. Make systematic gifts to children, using annual exclusion and exemption (correct answer)
2. Avoid gifting to preserve step-up in basis at any cost
3. Use unified credit to offset the child's capital gains taxes
4. Treat gifts as inheritance tax payments made before death

Question 5

1. It is a single credit shared across lifetime gifts and estate transfers (correct answer)
2. It resets annually, independent of prior taxable gifts
3. It applies only to income tax on inherited IRAs
4. It was permanently repealed and replaced by a flat deduction

Question 6

1. Gifting up to the annual exclusion amount to each child yearly (correct answer)
2. Using unified credit to reduce ordinary income tax brackets
3. Paying gift tax by withholding from the child's paycheck
4. Treating all gifts as loans to avoid any IRS reporting

Question 7

1. Use valuation discounts where supportable when gifting minority interests (correct answer)
2. Apply unified credit to reduce corporate income tax on dividends
3. Assume business interests are always exempt for family heirs
4. Avoid appraisals because exemptions eliminate valuation requirements

Question 8

1. Claim unified credit to offset income tax on dividends
2. Elect unified credit to eliminate state inheritance tax
3. Use unified credit only for charitable contribution deductions
4. Apply unified credit against taxable estate to shelter transfers (correct answer)

Question 9

1. Direct payment to a medical provider is generally exempt from gift tax (correct answer)
2. Medical payments are taxable gifts unless under annual exclusion
3. Medical payments are deductible only if recipient itemizes deductions
4. Medical payments trigger estate tax immediately upon payment

Question 10

1. Qualifying gifts within annual exclusion generally avoid gift tax return (correct answer)
2. All gifts require a gift tax return regardless of amount
3. Annual exclusion applies only to gifts of real estate
4. Annual exclusion eliminates the need to value gifted property

Question 11

1. Charitable bequests can reduce the taxable estate for estate tax (correct answer)
2. Charitable bequests increase taxable estate but reduce gift tax
3. Charitable bequests are treated as income to heirs for estate tax
4. Charitable bequests are disallowed if unified credit is claimed

Question 12

1. Revocable trust assets are generally included in the taxable estate (correct answer)
2. Revocable trust assets are excluded because they avoid probate
3. Revocable trust assets are taxed as the beneficiaries' income
4. Revocable trust assets are exempt only if titled jointly