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29. Which of the following statements is or are true?

I. If an asset is not subject to probate, then the only time it can be subject to federal estate tax if the property was jointly owned by the decedent with another with right of survivorship or owned by the decedent as tenants by the entirety with his or her spouse.

II. Bob buys a whole life policy on his life with a face value of $100,000. He makes a gift of the policy to his son, Larry, on January 20, 2013, when the policy cash surrender value is $10,000. Larry becomes the policy owner and names himself the beneficiary. Bob retains no incidents of ownership. Bob died on October 2, 2015. Life insurance proceeds are collected by Larry. The life insurance proceeds will be excluded from Bob's federal gross estate.

III. Mitchell left his entire estate in trust for his son, Monroe. Monroe is to receive all trust income for life. Mitchell also gave Monroe the right to appoint, by the terms of Monroe's will, all trust assets remaining in trust at Monroe's death, to anyone Monroe wishes except to Monroe, Monroe's estate, Monroe's creditors, or the creditors of Monroe's estate. When Monroe dies, trust assets will not be included in his gross estate for federal estate tax purposes.

a. I only is true.

b. II only is true.

c. Both I and II are true.

d. III only is true.

e. All are true.

30. Which, if any, of the following actions reduce both Neds gross estate and probate estate?

a.	Ned purchased a CD listing title as Ned, payable on proof of death to Eileen. Eileen is Neds niece.
b.	Four years ago, Ned named his wife as the designated beneficiary of his IRA. (Previously, Neds estate was the designated beneficiary.)
c.	Five years ago, Ned made a gift of an insurance policy on his life to his daughter (the designated beneficiary).
d.	None of the above

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