Question $37$

$2$ pts

Estates and trusts

are not taxed on capital gains.

receive a deduction for administrative expenses not otherwise deducted on the estate tax return $($Form $706).$

receive a $$1\mathrm{.}000$ personal exemption.

are taxed on state and municipal bond interest.

Question $38$

$2$ pts

Beneficiaries of a trust may receive

an income interest only.

Any of these is correct.

both an income and a remainder interest.

a remainder interest only.

$2$ nts