American College Exam HS330 Topic 1 Question 91 Discussion

Actual exam question for American College's HS330 exam

Question #: 91
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 Yvonne at Jul 02, 2024, 04:47 AM

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Shenika

17 days ago

I'm pretty sure the correct answer is A. You can't deduct a life insurance policy like that, it's just too close to the death event.

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Cecilia

18 days ago

Haha, imagine trying to claim a deduction for a life insurance policy you gave away just a few years before kicking the bucket. Talk about suspicious!

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Ardella

19 days ago

B and C look good to me. Reducing the deduction by taxes and expenses, and deducting the remainder interest in a charitable trust, those seem like standard rules.

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Lashandra

20 days ago

Option D seems a bit off. Isn't the deduction limit usually around 60% of the adjusted gross estate? I'll have to double-check that one.

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Kindra

6 days ago

User 2: B) The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.

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Melissa

10 days ago

User 1: 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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Genevive

1 months ago

Oh, you're right. In that case, the correct answer is B.

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2 months ago

I think the answer is A.

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