1. True or False: The LLCwill protect property 1 from being taken by a creditor if an accident occurs at Property 2.

2. True or False: The LLC will protect their personal bank accountin case an accident occurs at one of the properties.

3. True or False: Jesse gave his mom property valued at $100,000 six months before her death. Jesses adjusted basis in the property was $45,000. Jesse was the sole heir of his mothers estate, and the same property was distributed from his mothers estate to him. At his moms date of death, the property had a fair market of $105,000. Jesses adjusted basis in this property is $100,000.

4. True or False: The unlimited marital deduction is a deduction from a decedents adjusted gross estate to arrive at the decedents taxable estate. The unlimited marital deduction is limited to the value of the assets included in the decedents gross estate which are transferred to the decedents surviving spouse.

5. Lois had a bank account in the amount of $15,000 that was owned fee simple. She wanted to make sure her son, Ronnie, could access the money just in case so she changed the ownership of the account to JTWROS in her and Ronnies name equally. Ronnie has not made any withdrawals. True or False: Loiss action constitutesa gift.

6. True or False: Giving away property that has decreased in value is a good strategy for both the giver and the recipient.

7. Which of the following transfers requires a gift tax return to be filed?

a.Joe gifts $11,000 to his daughter Janisa.

b.Elroy gifts $50,000 to his wife, Elizabeth, who is a U.S. citizen.

c.Adam gives his favorite employee, Aaron, a new car at Aaron's retirement worth $20,000.

d.Pete transfers $20,000 to his friend Patricia. Pete and Patricia were divorced five years ago

8. Donald has created a trust for the benefit of his three nephews, Huey, Dewey, and Louie, who are all minors. Donald plans on making annual contributions to the trust. Donald would like at least some of his annual contributions to the trust to qualify for the annual exclusion. What would be the best way to accomplish this goal?

a.Donald should make sure that he does not contribute more than $15,000 for each nephew, or $45,000 in total, each year.

b.Donald should give his nephews an unlimited ability to remove funds from the trust.

c.Donald should give his nephews the right to remove some or all of the annual contribution from the trust for a limited period of time.

d.Donalds annual contributions to the trust will not qualify for the annual exclusion under any circumstances.