American College Exam HS330 Topic 4 Question 102 Discussion

Actual exam question for American College's HS330 exam

Question #: 102
Topic #: 4

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 Harley at Oct 18, 2024, 05:15 AM

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Almeta

16 hours ago

A life insurance policy to charity? Bold move, Cotton. Let's see if it pays off (pun intended).

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Leontine

6 days ago

Reducing the deduction by taxes and administrative expenses? That's just adding insult to injury, if you ask me.

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26 days ago

Ah, the good old 50% adjusted gross estate limit. Gotta love those pesky tax rules, am I right?

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Pansy

16 days 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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21 days ago

Yeah, it is a bummer that the life insurance policy assigned to charity doesn't qualify for a deduction.

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