Identify Which of the Following Statements Is True

question 99

Multiple Choice

Identify which of the following statements is true.

• A) Since municipal bond interest is exempt from federal income taxation, gifting the bonds escapes the gift tax.
• B) The creation of a joint tenancy by one person will result in a gift equal to the other joint tenant's pro rata interest in the property.
• C) The naming of a life insurance policy beneficiary constitutes a gift for transfer tax purposes.
• D) The creation of a joint bank account constitutes a taxable gift.