Which of the Following Is a False Statement Concerning an Asset

question 19

Multiple Choice

Which of the following is a false statement concerning an asset "freeze" as part of an estate plan?

• A)An asset "freeze" is used to prevent or reduce future accumulations of wealth in an elderly taxpayer's estate.
• B)An asset "freeze" is usually psychologically easier for an elderly taxpayer than an estate plan based on substantial gifts of existing wealth to younger-generation family members.
• C)A sale to a younger-generation family member of an asset that is expected to appreciate significantly in value is an example of an asset "freeze."
• D)A revocable transfer to a trust of assets by an elderly taxpayer for the benefit of younger taxpayers is an example of an asset "freeze."

---

Definitions:

Claims

Demands for something due or believed to be due, often used in the context of insurance or legal cases.

Mirror Image Rule

In contract law, the rule that an acceptance must duplicate the terms in the offer.

Additional Terms

Refers to supplementary conditions or clauses added to an agreement or contract.

Materially

In a significant or substantial manner, especially in a way that affects a contract or legal decision.