28. a. c. 29. a. c. Ann wishes to give her daughter Kate a power of appointment over a trust Ann has created. However, Ann does not want the trust to be included in Kate's gross estate for estate tax purposes. To avoid this, which of the following powers should Ann not give to Kate? a power to appoint property to Kate's children. b. a power to appoint property to Kate's creditors. a power to appoint property to Kate's husband, Mike. d. a power limited to an ascertainable standard relating to the health, education, support, or maintenance of Kate. Cathy has died and her will left all of her property to her husband, Dan. Under which circumstances would a disclaimer by Dan of some of the property not be effective? The disclaimer to qualify additional property for the charitable deduction if the disclaimed property passes to charity under Cathy's Will. b. The disclaimer if disclaimed property passes to a trust in which Dan has an income interest The disclaimer if disclaimed property passes to a trust in which Dan has the power to make distributions to others. d. The disclaimer to utilize additional unified credit of Cathy's if disclaimed property passes to a bypass trust (without a power of appointment) created under Cathy's Will John is 67 years old and would like to transfer some of his assets to his adult son, Murray. John does not want to incur a gift tax liability and also needs some cash flow, so he is considering selling the assets to his son. A friend recently informed John that a self- canceling installment note (SCIN) is a good planning strategy for many reasons. Which of the following statements regarding self-canceling installment notes (SCINS) is(are) CORRECT? 1. To be effective, a SCIN must reflect a risk premium to compensate the seller for the possibility of cancellation. 2. A seller who accepts a SCIN may accept security without jeopardizing the installment sale treatment. 3. At the seller's death, the present value of any remaining SCIN balance is excluded from the seller's gross estate. 4. A SCIN is a debt that ordinarily is extinguished at the seller's death. 30. a. b. c. d. 3 only 1 and 3 1, 2 and 3 1, 2, 3 and 4 28. a. c. 29. a. c. Ann wishes to give her daughter Kate a power of appointment over a trust Ann has created. However, Ann does not want the trust to be included in Kate's gross estate for estate tax purposes. To avoid this, which of the following powers should Ann not give to Kate? a power to appoint property to Kate's children. b. a power to appoint property to Kate's creditors. a power to appoint property to Kate's husband, Mike. d. a power limited to an ascertainable standard relating to the health, education, support, or maintenance of Kate. Cathy has died and her will left all of her property to her husband, Dan. Under which circumstances would a disclaimer by Dan of some of the property not be effective? The disclaimer to qualify additional property for the charitable deduction if the disclaimed property passes to charity under Cathy's Will. b. The disclaimer if disclaimed property passes to a trust in which Dan has an income interest The disclaimer if disclaimed property passes to a trust in which Dan has the power to make distributions to others. d. The disclaimer to utilize additional unified credit of Cathy's if disclaimed property passes to a bypass trust (without a power of appointment) created under Cathy's Will John is 67 years old and would like to transfer some of his assets to his adult son, Murray. John does not want to incur a gift tax liability and also needs some cash flow, so he is considering selling the assets to his son. A friend recently informed John that a self- canceling installment note (SCIN) is a good planning strategy for many reasons. Which of the following statements regarding self-canceling installment notes (SCINS) is(are) CORRECT? 1. To be effective, a SCIN must reflect a risk premium to compensate the seller for the possibility of cancellation. 2. A seller who accepts a SCIN may accept security without jeopardizing the installment sale treatment. 3. At the seller's death, the present value of any remaining SCIN balance is excluded from the seller's gross estate. 4. A SCIN is a debt that ordinarily is extinguished at the seller's death. 30. a. b. c. d. 3 only 1 and 3 1, 2 and 3 1, 2, 3 and 4