Which Is an Example of a Qualified Terminable Interest Property

question 20

Multiple Choice

Which is an example of a Qualified Terminable Interest Property (QTIP) property?

• A)A life insurance policy with a one-time lump sum payment to the surviving spouse
• B)An automobile
• C)A homestead
• D)A trust with a life interest to the surviving spouse and remainder to the children

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Definitions:

Expected Net Income

The projected profit of a business after all expenses and taxes have been deducted from total revenue.

Sales Commission

A fee paid to sales personnel, often calculated as a percentage of the sales they generate.

Machine-Hours

A unit of measure for the amount of work or operation time a machine has completed or is expected to complete.

Maintenance Cost

The expenses associated with upkeep, including repairs and preventive measures, to ensure the efficient operation of assets.