Classify Each of the Following Statements

question 7

Multiple Choice

Classify each of the following statements.
-Howard establishes a trust, life estate to his children, remainder to the grandchildren. Under its terms, the trust is revocable by Howard. Howard later relinquishes the right to revoke the trust.

• A)No taxable transfer occurs.
• B)Gift tax applies.
• C)Estate tax applies.

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Definitions:

Self-Serving Bias

A common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Internal Attributions

The process of ascribing the cause of one's own or others' behavior to personal traits, dispositions, or abilities, rather than to external factors.

External Attributions

The process of inferring that a person's behavior is due to situational factors, rather than aspects of the individual themselves.

Environment

The surroundings or conditions in which a person, animal, or plant lives and operates, including both natural and built environments.