Sample Questions
Question 1
Easy
The 2026 annual gift exclusion per donee is:
Solution
A is correct.
The 2026 annual gift exclusion is $19,000 per donee. This amount continues to be indexed for inflation under existing law; it was not specifically modified by OBBBA. Gifts at or below the annual exclusion do not use the unified lifetime exemption and do not require filing Form 709. Gift-splitting between spouses doubles the exclusion to $38,000 per donee.
The 2026 annual gift exclusion is $19,000 per donee. This amount continues to be indexed for inflation under existing law; it was not specifically modified by OBBBA. Gifts at or below the annual exclusion do not use the unified lifetime exemption and do not require filing Form 709. Gift-splitting between spouses doubles the exclusion to $38,000 per donee.
Question 2
Medium
In the context of gift taxation, what is the effect of gift splitting between married spouses?
Solution
B is correct.
Gift splitting allows married couples to elect to treat a gift made by one spouse as if each spouse made half the gift. This effectively doubles the annual exclusion to $38,000 per recipient in 2026 (2 x $19,000). For example, if one spouse gives $38,000 to a child, gift splitting treats each spouse as having given $19,000, and both amounts fall within the annual exclusion.
Gift splitting allows married couples to elect to treat a gift made by one spouse as if each spouse made half the gift. This effectively doubles the annual exclusion to $38,000 per recipient in 2026 (2 x $19,000). For example, if one spouse gives $38,000 to a child, gift splitting treats each spouse as having given $19,000, and both amounts fall within the annual exclusion.
Question 3
Hard
A letter of intent in the context of special needs planning is best described as:
Solution
A is correct.
A letter of intent is a non-binding but critically important document that parents or caregivers prepare to guide future caregivers, guardians, and trustees. It typically includes information about the disabled individual's medical history, daily routines, behavioral patterns, social activities, dietary needs, and the family's wishes for quality of life. While not legally enforceable, it provides essential context that legal documents alone cannot capture.
A letter of intent is a non-binding but critically important document that parents or caregivers prepare to guide future caregivers, guardians, and trustees. It typically includes information about the disabled individual's medical history, daily routines, behavioral patterns, social activities, dietary needs, and the family's wishes for quality of life. While not legally enforceable, it provides essential context that legal documents alone cannot capture.
