American College HS330 Exam - Topic 1 Question 52 Discussion

Actual exam question for American College's HS330 exam

Question #: 52
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 Tiffiny at May 28, 2022, 02:20 PM

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Yuette

7 months ago

I’m not so sure about that remainder interest thing... sounds fishy.

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Krissy

7 months ago

The deduction limit is definitely 50% for estates, no doubt about that.

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Margret

7 months ago

Wait, really? I thought any gift to charity was deductible.

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Carry

7 months ago

Totally agree, that rule is pretty strict!

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Camellia

7 months ago

A life insurance policy given to charity less than 3 years before death doesn't qualify.

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Elke

8 months ago

I’m pretty confident that the deduction for a charitable remainder trust is valid, but I need to double-check the specifics on that.

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Donte

8 months ago

I feel like the deduction limit is actually more than 50 percent for some estates, but I can't remember the exact details.

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King

8 months ago

I think I saw a similar question about charitable deductions and estate taxes in our practice exam, but I can't recall the specifics.

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Jose

8 months ago

I remember studying that life insurance policies given to charities have specific rules, but I'm not sure if the 3-year rule applies here.

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Allene

8 months ago

This looks straightforward, I'll just create a pod with the specified images and name it kucc8.

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Isidra

8 months ago

This one seems pretty straightforward. I'm going to carefully read through the options and think about the most likely reason for the error.

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