P1-U18 · PART 1 · SOURCE CYCLE 2026-2027
Individual Estate and Gift Tax
How to complete this unit
This unit uses 14 source-gated recall cards and 13 admissible practice questions. Complete the sequence in order; the unreleased wiki prose remains outside the learner path.
- 1 · LearnBuild the rule
Answer each recall prompt before opening it. Then learn the exact rule, test the controlling facts through four quick challenges, explore common questions, and finish with one own-words teach-back.
- 2 · ApplyUse it in context
Complete at least 13 mapped questions over two sessions. Review the explanation even when the answer is correct.
- 3 · ProveTest readiness
Use the Part 1 mock under time pressure. Return here for every flagged or missed concept before the next attempt.
Verified recall questions
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here. Stable unit ownership gathers this lesson across 1 textbook collection.
Q1.Which form notifies the IRS of the creation or termination of a fiduciary relationship?
Form 56, Notice Concerning Fiduciary Relationship.
Q2.Who is generally responsible for paying gift tax?
The donor.
Q3.Recall the rule for this EA objective in Specialized Returns For Individuals: Jointly held property
Generally include its full value, subject to the contribution and qualified-joint-interest rules
Q4.Recall the rule for this EA objective in Specialized Returns For Individuals: Gift-splitting
Gift splitting
Q5.Recall the rule for this EA objective in Specialized Returns For Individuals: Annual exclusion
$19,000
Q6.Recall the rule for this EA objective in Specialized Returns For Individuals: Filing requirements (e.g., Form 709)
Form 709
Q7.What is the gift-tax annual exclusion?
a donor may exclude gifts of a present interest up to the annual-exclusion amount per donee each year future-interest gifts generally do not qualify gift splitting with a spouse can effectively double the exclusion for a donee when elected
Q8.When is Form 709 generally required?
when gifts to any donee exceed the annual exclusion when the donor elects gift splitting with a spouse when the donor gives a future interest to anyone certain transfers also require reporting even if no tax is due
Q9.What is included in the gross estate for Form 706 purposes?
property in which the decedent had an interest at death certain transfers with retained interests, jointly owned property, annuities, and general powers of appointment life-insurance proceeds receivable by the estate or over which the decedent held incidents of ownership
Q10.What is estate-tax portability?
a surviving spouse may use the deceased spouse's unused exclusion amount if a timely and complete Form 706 elects portability the DSUE amount increases the surviving spouse's applicable exclusion for gift and estate tax portability does not automatically transfer GST exemption
Q11.Bruno, age 71, pays $19,800 of college tuition for his favorite granddaughter, Margaret, age 25, directly to her college. Bruno does not claim his granddaughter as a dependent. Which of the following statements is correct?
The gift is not taxable, and no gift tax return is required.
Q12.Claude dies on May 4, 2025. His assets are valued at $60 million on the date of his death, so a Form 706 needs to be filed for his estate. When is the estate tax return due?
February 4, 2026
Q13.Eileen's aunt gives her a gift of a "future interest" on her estate. Eileen will have full use of the estate after her aunt dies. Which is the correct statement about this gift?
Eileen's aunt cannot use the annual gift tax exclusion for this gift.
Q14.Cash inheritances are generally:
Not taxable to the beneficiary for any amount.
Ready to move on?
- ▸ Explain at least 80% of these 14 rules without opening the answer, twice on different days.
- ▸ Score 80% across 13 or more mapped questions over two sessions, not one memorized round.
- ▸ Complete a timed Part 1 mock and return to this unit if its concepts remain flagged or missed.
Use these checks to choose your next study action. They do not predict a PSI scaled score.