American College Exam HS330 Topic 1 Question 88 Discussion

Actual exam question for American College's HS330 exam

Question #: 88
Topic #: 1

In which of the following estates would it normally be most desirable to provide for a federal estate tax marital deduction for approximately one half of the property?

AIn the estate of the spouse with the bulk of the family wealth when only one spouse has substantial wealth

BIn the estate of the first spouse to die when neither spouse has a substantial estate

CIn the estate of the spouse who does not have the bulk of the family wealth when only one spouse has substantial wealth

DIn the estate of the first spouse to die, regardless of the relative wealth of each spouse

Show Suggested Answer

Suggested Answer: B

by Cordelia at May 19, 2024, 06:55 PM

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Margo

6 days ago

Hmm, I'm not sure. Wouldn't it be better to take the marital deduction in the estate of the first spouse to die, regardless of their relative wealth? That way, you can delay the federal estate tax for as long as possible.

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Alayna

14 days ago

I'm not sure, but I think it makes sense to take advantage of the deduction when one spouse has more wealth to protect the assets for the surviving spouse.

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Merissa

15 days ago

I agree with Marnie. Providing the marital deduction in the estate of the spouse with less wealth helps equalize the estates and minimize the overall tax burden.

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Marsha

2 days ago

A) In the estate of the spouse with the bulk of the family wealth when only one spouse has substantial wealth

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Marnie

16 days ago

Option C seems like the most logical choice here. If only one spouse has substantial wealth, the marital deduction would be most beneficial in the estate of the less wealthy spouse.

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Helene

21 days ago

I agree with Shantell. Providing for a federal estate tax marital deduction in that scenario would help reduce the tax burden on the estate.

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Shantell

22 days ago

I think the answer is A) In the estate of the spouse with the bulk of the family wealth when only one spouse has substantial wealth.

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