Tia Funds an Irrevocable Trust with $100,000, Naming Vonda to Receive

question 72

Multiple Choice

Tia funds an irrevocable trust with $100,000, naming Vonda to receive income for life. Tia also grants Vonda a general power of appointment during her life. During the next year, Vonda directs the trustee to give $100,000 to Rick. Which of the following statements is not correct?

• A)Tia made a $100,000 gift to Rick.
• B)Vonda makes a $100,000 gift to Rick.
• C)Tia has made a gift of $100,000 to Vonda.
• D)Exercising a general power of appointment constitutes a gift.

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Definitions:

Progressive-Era Immigration

A period from the late 19th to early 20th century characterized by high levels of immigration to the United States, with significant cultural, societal, and political impacts.

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The period of economic growth and increased industrial output, often associated with the Industrial Revolution, which began in the 18th century.

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Farming practices that rely on indigenous knowledge, natural resources, and cultural beliefs to cultivate crops and livestock, often without modern technology.

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Platform of the Progressive Party and slogan of former president Theodore Roosevelt in the presidential campaign of 1912; stressed government activism, including regulation of trusts, conservation, and recall of state court decisions that had nullified progressive programs.