Identify Which of the Following Statements Is False

question 21

Multiple Choice

Identify which of the following statements is false.

• A) For a transfer made in trust, each beneficiary is deemed to be a separate donee.
• B) A trust for a minor (Sec. 2503(c) trust) must distribute all of its income currently in order to qualify for the annual exclusion.
• C) A future interest includes reversions, remainders, and other interests, which are limited to commence in use, possession, or enjoyment at some future date or time.
• D) The gift tax exclusion is available only for a gift of a present interest.

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Definitions:

Opportunity Cost

The financial loss associated with rejecting the subsequent optimal choice in any decision-making scenario.

Specialized Tools

Equipment or instruments designed for specific tasks or professions, enhancing efficiency and precision.

Landscaping Firm

A company that specializes in designing, implementing, and maintaining outdoor spaces, gardens, and other landscape features.

Public Good

A product that is accessible to everyone without restriction and whose consumption by one person does not diminish its availability to others, characterized by its non-excludable and non-rival nature.