Match Each Statement with the Correct Choice

question 72

Multiple Choice

Match each statement with the correct choice. Some choices may be used more than once or not used at all.
-Surviving spouse disclaims inheritance in favor of bypass amount.

• A)Step-up in basis
• B)Step-down in basis
• C)Gift of installment notes receivable
• D)Gift of property that has potential for recapture of depreciation
• E)Donor's basis on date of gift appreciated property given, no gift tax due)
• F)The amount of the deceased spouse's taxable estate does not change
• G)Fair market value on date of gift
• H)Expected surviving spouse is in good health and 10 years younger
• I)No income tax consequences to the beneficiary
• J)Income in respect of a decedent IRD)
• K)No correct choice is given

Understand the significance of maintaining good health to manage medical costs.

Identify the mechanisms of cost-sharing in health insurance policies (deductibles, coinsurance).

Understand government health insurance programs (Medicare, Medicaid) and their coverage.

Recognize the difference between individual and group health insurance policies.

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Definitions:

Birthday Rule

A means to identify primary responsibility in insurance coverage; identifies the primary insurance carrier when children have coverage through more than one parent. The insurance of the parent with the birthday earliest in the year, month and day only, is identified as the primary insurer. If both parents have the same birth date, the policy that has been in effect the longest is the primary carrier.

Custody

The legal authority or responsibility to care for someone or something, often used in relation to child custody in legal contexts.

Primary

Refers to the first or most significant condition, factor, or level in a series or system.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for certain younger people with disabilities or specific diseases.