📏CPA EXAM PREP

Gift and Estate Tax

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Question

Why does portability matter for a surviving spouse?

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Answer

It lets the spouse use the deceased spouse's unused exclusion.

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Question

How are taxable gifts used in the estate and gift tax system over time?

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Answer

They accumulate cumulatively over life.

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Question

What property is included in the gross estate?

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Answer

FMV of property owned or controlled at death.

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Question

Why can life insurance be included in the gross estate?

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Answer

Because the decedent owned it or had incidents of ownership.

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