The Generation-Skipping Tax Is Designed to Accomplish Which of the Following

question 78

Multiple Choice

The generation-skipping tax is designed to accomplish which of the following?

• A) Prevent the avoidance of transfer taxes (both estate and gift tax) through transfers that skip a generation of recipients.
• B) Eliminate the possibility that the estate tax can be avoided by gifts in contemplation of death.
• C) Generate additional revenues to supplement the estate tax.
• D) Replace the gift tax on distributions from trusts.
• E) None of the choices are correct.

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Definitions:

Utility

The total satisfaction or benefit derived from consuming a good or service.

Convenience

The aspect of a product or service that relates to the ease of use and the degree to which it saves time and effort for the consumer.

Environmental Scanning

The process of collecting information about external influences and trends that can affect an organization's strategic planning.

Competitive

Characterized by rivalry. It can refer to companies or individuals striving to attain an advantage or superiority in a market or activity.