Which of the Following Transactions Constitutes a Completed Gift Made

question 40

Multiple Choice

Which of the following transactions constitutes a completed gift made by Ellen, a widow, in the current year?

• A)Ellen deposits $100,000 cash and Matt deposits $5,000 cash into a joint savings account. Matt does not withdraw anything during the current year.
• B)Ellen names Larry the beneficiary of a $100,000 life insurance policy on Ellen's life. The beneficiary designation is revocable.
• C)Ellen transfers property to a revocable trust, naming the bank as trustee. The trustee must pay out all the income to Ed over Ed's lifetime, beginning next year.
• D)Ellen reimburses her granddaughter $15,000 for her tuition at medical school.

---

Definitions:

Myelinated Axons

Axons that are coated with a protective layer of myelin, which helps to speed the transmission of electrical signals along the nerve cells.

Gray Matter

Gray matter and is a component of the brain and spinal cord, consisting of neuronal cell bodies, dendrites, and unmyelinated axons, playing a crucial role in processing information.

Refractory Period

The time after an action potential during which a neuron’s cell membrane is unprepared for the next action potential.

Action Potential

A brief electrical impulse that travels down a neuron, triggering the release of neurotransmitters.