True/False

1-While the use of Crummey withdra wal powers, to the extent of $14,000 per donee/beneficiary can shelter the donor from gift tax, a Crummey power in excess of $5,000 in any year can have gift tax consequences, (as well as possible estate tax consequences).

2-An example of a skip person (as defined in the generation skipping transfer tax) is the transferor’s grandchild.

 

3-Under the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001, the $675,000 applicable exemption amount has been increased to $3.5 million (for estate and generation skipping transfer tax purposes) in a series of increases between 2002 and 2009.

 

4-No matter what the value of their gross estate, U.S. citizens are exempt from federal estate taxes.

 

5-A charitable contribution deduction is allowable for the present value of interests granted to charities in certain trusts in which the charity has either an income interest for a period of time or a remainder interest.

 

6-The estate tax structure permits essentially unlimited transferability of property between spouses free of any tax.

 

7-There is an unlimited gift tax marital deduction.

 

8-The gross estate generally includes all property owned by a decedent at death.

 

9- Life insurance policy proceeds can never be subject to federal estate tax.

 

10-The right to surrender or cancel a life insurance policy is considered an “incident of ownership.”