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1. The estate tax exemption has always been around $1,000,000.

True False

2. The estate and gift tax credit are unified.

True False

3. The estate tax exemption has remained constant over 10 years.

True False

4. A person may use their annual exclusion this year together with their gift exemption to cover the cost of a gift.

True False

5. If a decedent has a taxable estate that does not exceed his or her unified credit, then the decedent's estate is entitled to a refund of the unused credit amount.

True False

6. If the taxable estate produces a tax that exceeds the estate credit, then the tax must be paid no more than nine months from the decedent's death.

True False

7. The estate tax is determined by including tax paid on gifts within three years of death.

True False

8. An executor may deduct certain expenses, charitable transfers, and marital transfers from the decedent's gross estate.

True False

9. If the taxable estate produces a tax less than the applicable credit there is no tax payable.

True False

10. The retention of the gift tax is to discourage generous behavior during a taxpayer's life.

True False

Basic Quiz - 1.3.2 Estate Applicable Exclusion Amount