All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:
A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. Which of the following statements concerning this action is (are) correct?
l. lf the husband dies first, it would be easier to qualify his estate for a Section 303 redemption of his business interest.
ll. lf the husband dies first, the probate costs of his estate could be increased.
The owner of a successful business wishes to sell it to his employee-son so that he can retire. The business is worth substantially more than the owner's basis. The owner and the employeeson have agreed to an installment sale. Which of the following statements concerning this sale is (are) correct?
l. The present value of any unpaid installments remaining at the owner's death is includible in his estate.
ll. lnstallment payments are received free of income tax until the seller recovers his basis.
Which of the following statements concerning the inclusion in a decedent-employee's gross estate of a lump-sum distribution from a qualified retirement plan to a beneficiary other than the employee's estate is (are) correct?
l. Lump-sum distributions of payments attributable to the employer's contributions are excluded from the gross estate.
II. Lump-sum distributions of payments attributable to the decedent-employee's contributions are excluded from the gross estate.
Having a will enables an individual to do which of the following?
l. Make testamentary bequests to selected charitable organizations
ll .Make specific bequests to selected friends