Test Senior Tax Analyst Certification Test 2017 Estate Taxa

Test - Senior Tax Analyst Certification Test (2017) Estate Taxation Fundamentals Question 24 of 105. In June 2016, Cynthia died. She lived with her sister Roxanne until the time of her death. Her only asset was the home she owned jointly with Roxanne with right of survivorship. It was worth $7 not apply to the court to be named administrator. Assuming that Cynthia purchased the home with her own funds million at death. Cynthia left no will, and Roxanne did , which statement is correct? O No estate return need be filed because there is no one named by the court to file it. Roxanne must file the estate tax return because she is in possession of Cynthia\'s asset and, for tax purposes, is therefore considered to be her personal representative O No estate tax return need be filed because Cynthia\'s estate is under the filing threshold. O Roxanne must appoint an executor over the estate to file Cynthia\'s return Mark for follow up Question 25 of 105.

Solution

Answer 25 of 105 -

Mr.Orange will be the personal representative for purposes of filling form 706.

As per Personal Representative for 706 -

As per tax laws, a personal representative is an indivdual reponsible for handling the estate of someone who has died. Its the personal representatives job to make sure that all the deceased person\'s bills are paid, including any taxes, and to distribute the person\'s property to the family or their heirs.

Personal representative can be an executor or an administrator. If the \'\'decedent\'\' (the person who died) named someone to handle the estate in his or her will, that person is the executor. If the will doesn\'t name an executor, or if the named executor can\'t or won\'t do the job, a court can appoint an a administrator to handle the estate.

As per instruction of form 706 - The term executor includes the executor, personal repreentative, or adminstrator of the decedent\'s estate. When there is no probate and no appointed representatives, the IRS will allow a \'\'person charged with property of the decedent\" to file the decedent\'s income tax returns and claims refunds. IRS written guidance does not specify who this person should be. If there is surviving spouse, he or she usually files required returns.

Since here Pink.Jr declines to serve, court accepts and appoints Mr.Orange to be the executor.

Answer 24 of 105 -

Roxanne must file the estate tax returns because she is in possession of Cynthia\'s asset and for tax purpose, is therefore considered to be her personal representative.

As per laws, if the \'decedent\' (the person who died) named someone to handle the property in his or her will, the person is the executor. If the will doesn\'t name an executor, or if the named executor can\'t or won\'t do the job, a court can appoint an administrator to handle the estates. If none of these are appointed, qualified, and acting in the united states, every person in actual or constructive possession of any property of the decedent is considered as an executor and must file a return.

As Cynthia lived with her sister until the time of her death and asset was owned jointly with Roxanne with right of survivorship and no will was left, Roxanne must file the tax return.