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American College Exam HS330 Topic 1 Question 93 Discussion

Actual exam question for American College's HS330 exam
Question #: 93
Topic #: 1
[All HS330 Questions]

All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:

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Suggested Answer: D

by Arthur at Jul 17, 2024, 04:57 PM

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Karan
4 months ago
Hey, as long as I can deduct my collection of rare estate-tax-themed stamp collections, I'm happy!
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Whitley
4 months ago
Alright, let's keep this lively but professional, folks. No need to pull any creative estate-planning stunts here, eh?
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Jutta
3 months ago
D) The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.
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Janae
3 months ago
C) An estate may deduct the value of the remainder interest in a charitable remainder trust.
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Clay
3 months ago
B) The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.
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Lemuel
3 months ago
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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Mignon
4 months ago
Hmm, I'm not sure about this one. I guess I'll have to go with option C, since it seems the most straightforward.
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Mammie
4 months ago
This is a tricky one, but I think option B is the correct answer. The deduction is reduced by any taxes and administrative expenses chargeable against the bequest.
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Wilbert
4 months ago
Yes, that's right. It's important to consider those factors when calculating the charitable deduction.
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Rosio
4 months ago
I think option B is correct, the deduction is reduced by taxes and expenses.
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Craig
5 months ago
Hmm, I see your point. Let's wait for more opinions before deciding.
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Michell
5 months ago
I agree with Stevie, D makes more sense because it sets a limit on the deduction.
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Craig
5 months ago
But A seems more logical, as it talks about a specific time frame.
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Stevie
5 months ago
I disagree, I believe the answer is D.
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Yuki
5 months ago
I agree with option D. The amount of the charitable deduction is limited to 50% of the decedent's adjusted gross estate.
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Laurel
4 months ago
So, the estate can't deduct more than half of the adjusted gross estate for charitable contributions.
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Hoa
4 months ago
That's correct. The deduction cannot exceed 50% of the estate.
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Frederica
4 months ago
I agree with option D. The amount of the charitable deduction is limited to 50% of the decedent's adjusted gross estate.
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Shayne
4 months ago
I think option A is incorrect. A life insurance policy gifted to a charity less than 3 years before death does not qualify for a charitable deduction.
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Gilma
5 months ago
That's correct. The estate may deduct the value of the remainder interest in a charitable remainder trust.
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Celeste
5 months ago
I agree with option D. The amount of the charitable deduction is limited to 50% of the decedent's adjusted gross estate.
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Ammie
5 months ago
Option A is incorrect. A life insurance policy assigned to a charity less than 3 years before death does not qualify for the deduction. The policy needs to be assigned at least 3 years prior to death.
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Gearldine
5 months ago
Option A is incorrect. The policy needs to be assigned at least 3 years prior to death.
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Cherri
5 months ago
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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Craig
5 months ago
I think the answer is A.
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