Identify Which of the Following Statements Is True

question 2

Multiple Choice

Identify which of the following statements is true.

• A)Reversionary interests of less than 5% are includible in the gross estate.
• B)A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer.
• C)If a reversionary interest exceeds 3% of the property's value, the amount that is included in the estate is not the value of the reversionary interest, but rather the date-of-death value of the gifted property less the value of intervening life estates.
• D)All of the above are false.

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Definitions:

Communal

Pertaining to or shared by members of a community or group.

Altruistic

The quality of unselfishly caring for the welfare of others, often at a personal cost.

Mutual

Pertaining to a shared feeling, relationship, or responsibility between two or more parties.

Exchange

The act of giving one thing and receiving another in return.