Classify Each of the Following Statements

question 128

Multiple Choice

Classify each of the following statements.
-Maggie purchased an insurance policy on Jim's life and designated Susan as the beneficiary.

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

---

Definitions:

Express Contract

A clearly stated agreement between parties where terms are explicitly stated either orally or in writing.

Personal Sports Trainer

A professional who designs and implements workout programs tailored to the fitness goals and needs of individuals.

Promisor

A person who makes a promise.

Promisee

The person to whom a promise is made or who stands to benefit from the fulfillment of the promise.