Which of the Following Is Not True of a Credit-Shelter

question 10

Multiple Choice

Which of the following is not true of a Credit-Shelter trust?

• A)It is also known as a residuary trust.
• B)It allows $11.18 million (in 2018)of every estate to pass free of federal estate taxes to your spouse.
• C)Only an estate of more than $22.36 million is taxable for a married couple.
• D)The exemptions allowed by the Tax Cuts and Jobs Act of 2017 never expire.
• E)It is also known as a bypass trust.

---

Definitions:

Interest Expense

The financial charges a company bears for loaned money across a time frame.

Note Payable-National Bank

A written promise to pay a specific sum of money, borrowed from a national bank, at a future date.

Carrying Value

Also known as the book value, it is the value of an asset on a company's balance sheet after accounting for depreciation, amortization, or impairment costs.

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans.