Jordan (70) and Brianna (30) are now divorced. They had one child, Lucas. Despite their differences, Jordan and Brianna have stayed friends. Last year, since Brianna was unable to support herself financially, Jordan gave her $75,000 out of pure generosity. Which one of the following statements is correct regarding the generation-skipping transfer tax (GSTT)? A) The transfer is subject to GSTT since Brianna is more than 37.5 years younger than Jordan. B) The transfer is subject to GSTT as a non-skip transfer. C) The transfer is not subject to GSTT since Brianna is Jordan's former spouse. D) The transfer is subject to GSTT since spouses and former spouses are always treated as skip persons.
Jordan (70) and Brianna (30) are now divorced. They had one child, Lucas. Despite their differences, Jordan and Brianna have stayed friends. Last year, since Brianna was unable to support herself financially, Jordan gave her $75,000 out of pure generosity. Which one of the following statements is correct regarding the generation-skipping transfer tax (GSTT)? A) The transfer is subject to GSTT since Brianna is more than 37.5 years younger than Jordan. B) The transfer is subject to GSTT as a non-skip transfer. C) The transfer is not subject to GSTT since Brianna is Jordan's former spouse. D) The transfer is subject to GSTT since spouses and former spouses are always treated as skip persons.
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter15: Preserving Your Estate
Section: Chapter Questions
Problem 9FPE
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Question ID: 1251873
Jordan (70) and Brianna (30) are now divorced. They had one child, Lucas. Despite their differences, Jordan and Brianna have stayed friends. Last year, since Brianna was unable to support herself financially, Jordan gave her $75,000 out of pure generosity. Which one of the following statements is correct regarding the generation-skipping transfer tax (GSTT)?
A)
The transfer is subject to GSTT since Brianna is more than 37.5 years younger than Jordan.
B)
The transfer is subject to GSTT as a non-skip transfer.
C)
The transfer is not subject to GSTT since Brianna is Jordan's former spouse.
D)
The transfer is subject to GSTT since spouses and former spouses are always treated as skip persons.
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