George Transfers Property to an Irrevocable Trust for the Benefit

question 101

Multiple Choice

George transfers property to an irrevocable trust for the benefit of his adult children and names himself as trustee. The trust document requires the trustee to distribute trust property to the beneficiaries at the trustee's discretion with the possibility of no distribution to certain beneficiaries as the trustee deems appropriate. The trust will terminate at the end of nine years, and the property will pass to George's children. Which of the following statements is correct?

• A) George's transfer of property to the trust is a gift of a future interest.
• B) The beneficiaries receive a present interest in the trust property when George transfers the assets to the trust.
• C) The transfer by George is eligible for the annual gift tax exclusion.
• D) George's transfer of property to the trust is not taxed under gift tax rules at the date of transfer.

Understand the factors influencing self-confidence in children.

Grasp the dynamics of relationship engagement across different family pairs.

Identify false beliefs about self-conscious emotions and their consequences.

Distinguish between self-conscious emotions and other types of emotions.

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Definitions:

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Hypothalamus

A region of the brain responsible for the production of many of the body's essential hormones, influencing hunger, thirst, sleep, and emotional activity.

Gonads

The reproductive glands in animals, including humans, where sperm and eggs are produced.

School Dropout

The act of leaving school before completing the educational program, which can be influenced by a variety of factors including socio-economic status, personal issues, or academic challenges.