Identify Which of the Following Statements Is False

question 41

Multiple Choice

Identify which of the following statements is false.

• A) Life estates are valued using actuarial tables.
• B) If an individual transfers property in trust and reserves the right to the trust's income for life, the individual retains a life estate.
• C) If a grantor transfers property in trust and names a beneficiary to receive only a term- certain interest and then the property is to return to the grantor, the transaction is not subject to gift tax.
• D) An individual who receives a remainder interest will receive property after the death of the holder of a life estate.

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Definitions:

Depositors

Individuals or entities that hold accounts with banks or financial institutions, entrusting their funds for safekeeping and earning interest.

Money Market Mutual Fund Account

An investment account that pools money from individuals to invest in short-term, high-quality securities, often offering liquidity and low risk.

Interest-Earning Assets

Financial assets that generate income over time through the payment of interest, such as bonds, savings accounts, and certificates of deposit.

FDIC

The Federal Deposit Insurance Corporation (FDIC) is a United States government agency that provides deposit insurance to depositors in American commercial banks and savings institutions.