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:

Extrinsic Muscles

Muscles that originate outside of the body part they act upon, often providing gross motor function.

Lateral Rectus

A muscle located in the eye that functions to rotate the eyeball away from the body's central line.

Inferior Obliques

Muscles located beneath the eyes that help control eye movement, particularly elevating the eye when looking inward or outward.

Flexor Digiti Minimi Brevis

A muscle in the hand responsible for flexing the little finger.