Which of the Following Statements Are True Regarding Life Income

question 20

Multiple Choice

Which of the following statements are true regarding life income gifts?

• A) Require the amount of the payment to the beneficiary to vary based on the earnings of the trust.
• B) Require a fixed-dollar payment to be made annually to a designated recipient.
• C) Assets are recorded at historical cost when donated.
• D) Life income gifts are no longer allowed by governmental colleges and universities.

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Definitions:

Tort Action

A lawsuit brought to obtain a private civil remedy for harm caused by wrongful conduct.

Strict Liability

A legal doctrine that holds a party responsible for their actions or products without the plaintiff having to prove negligence or fault.

Product Liability

The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.

Misrepresentation

The act of providing false or misleading information, often in a contractual context where one party deceives another.