Which of the following statements is correct? A gratuítous transfer is always subject to donor's tax. A transfer is gratuítous or without consideration and accordingly qualifies as a donation, if no economic benefit measurable in money or money's worth flowed to the transferor from the transferee. A donation on which the donor's tax was not paíd is not a valíd donation. Títle to the donated real property can be transferred to the donee in the Register of Deeds even if the donor's tax on the donation had not been paíd.

Which of the following statements is correct? A gratuítous transfer is always subject to donor's tax. A transfer is gratuítous or without consideration and accordingly qualifies as a donation, if no economic benefit measurable in money or money's worth flowed to the transferor from the transferee. A donation on which the donor's tax was not paíd is not a valíd donation. Títle to the donated real property can be transferred to the donee in the Register of Deeds even if the donor's tax on the donation had not been paíd.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter18: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 2BCRQ

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Which of the following is correct? The gain basis for property received by gift is the lesser of the donor’s adjusted basis or the fair market value on the date of the gift. The loss basis for property received by gift is the same as the donor’s basis. The gain basis for inherited property is the same as the decedent’s basis. The loss basis for inherited property is the lesser of the decedent’s basis or the fair market value on the date of the decedent’s death. None of the above.
Which one of the following correctly states a purpose of the generation-skipping transfer tax (GSTT)? A) To encourage the transfer of wealth to younger generations B) To ensure transfer taxes are paid at each generation by transfer taxing wealth when it is transferred to a skip person C) To discourage generation-skipping transfers by using up the transferor's gift or estate tax credit amounts more quickly D) To substitute the GSTT for any gift or estate tax due on the transfer instead of imposing the gift or estate tax
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Which of the following statements is CORRECT regarding the effect of the generation-skipping transfer tax on transfers in trust? A trust can be a skip person if all future trust distributions can only be made to skip persons. A trust can be a skip person if all current beneficial interests in the trust are held by skip persons. A trust can only be a non-skip person. A trust can be a non-skip person if any non-skip person holds an interest in the trust. A)I, II, and IV B)III and IV C)I and II D)III only
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