Identify Which of the Following Statements Is False

question 72

Multiple Choice

Identify which of the following statements is false.

• A) Every grantor is entitled to a $5.25 million exemption from the GSTT in 2011.
• B) If Greg transfers assets directly to his grandson, this transaction would be an example of a direct skip.
• C) The GSTT is levied at a flat rate, which is higher than the top rate under the estate tax rate schedule.
• D) If Shaad transfers property in trust to his son, with the remainder to his grandson, at the death of the son a taxable termination will result.

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Definitions:

Statute of Frauds

A legal requirement that certain types of contracts be in writing and signed by the parties involved to be enforceable.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties involved to be legally enforceable.

Main Purpose Doctrine

A legal principle stating that if the main purpose of a guarantor to provide a guarantee is to serve their own interests, they may not require the benefit of the creditor first exhausting remedies against the principal debtor.

Leading Object Rule

A legal principle that allows for the enforcement of oral contracts that are unenforceable under the Statute of Frauds if they are admitted to in court by the party against whom the contract is sought to be enforced.