All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:

• A. All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.
• B. Jointly held property between spouses does not pass through the probate estate of the first spouse to die.
• C. The deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.
• D. In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.

Which of the following statements concerning the generation-skipping transfer tax (GSTT) is correct?

• A. The lifetime exemption shelters a maximum of $1 million of transfers to grandchildren from GSTT for the current year.
• B. The annual exclusion against GSTT shelters gifts by a grandparent to a trust benefitting multiple grandchildren.
• C. The GSTT rate applicable to a transfer depends upon the amount of the gift.
• D. Tuition payments made by a grandparent directly to a university for a grandchild's education are exempt from GSTT.

Which of the following statements concerning executors is correct?

• A. The executor named in the will of a deceased person is automatically authorized to act.
• B. An executor can be given broad and discretionary powers with respect to the management of the estate.
• C. The executor must be a licensed attorney in the decedent's state of domicile.
• D. All executors must post bonds.

Which of the following statements concerning the gift or estate tax charitable deduction is (are) correct?
1.A donor is denied a charitable deduction for property that passes to a qualified charity as the result of a qualified disclaimer if the donor original transfer was to a noncharitable donee.
2.A decedent-spouse estate may obtain both marital and charitable deductions for interests contributed to a charitable remainder trust when the surviving spouse is the only noncharitable income beneficiary for life.

• A. 2 only
• B. Both 1 and 2
• C. Neither 1 nor 2
• D. 1 only

A father and son have been farming land owned by the father for the past 12 years. Just prior to his death, the father was offered $1,200,000 for his farm because of its possible use as a shopping center. The son would like to continue to farm the land if it can be included in his father's estate at its current use value. Additional facts are:
1.Average annual gross rentals from nearby farms of similar acreage are $56,000. 2.Average annual state and local real estate taxes on the farm are $8,000. 3.The interest rate for loans from the Federal Land Bank is 8 percent.
For federal estate tax purposes, the farm method valuation formula would result in a current use value for the farm of

• A. $700,000
• B. $500,000
• C. $820,000
• D. $600,000