Concerning a married couple, which of the following statements is CORRECT? When one of them dies: A) the value of the estate in excess of the estate tax exemption is transferred to the surviving spouse on a tax-free basis. B) estate taxes are assessed to their half of the estate, and the net estate is transferred to the surviving spouse on a tax-free basis. C) their half of the estate is transferred to the surviving spouse on a tax-free basis. I have no idea! Does schweser specifies this?
I believe it’s C.
C. Yes Schweser covers this. Check the section about managing portfolios for private investors that explains the different account types.
Correct, it’s C. Thanks a lot, I didn’t remember…
This question is still in the 2010 Q Bank, and I don’t understand the answer. The CFA curriculum states that spouses are generally exempt from estate tax transfers when the first spouse dies.