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.

---

Definitions:

Physical and Mental Disabilities

Impairments that significantly restrict one or more major life activities, including both bodily functions and mental conditions.

Equal Employment Opportunity (EEO) Law

Laws that prevent job discrimination based on race, color, sex, national origin, religion, age, equal pay, disability, and genetic information.

Subjective Criteria

Evaluation or judgment criteria based on personal opinions, interpretations, feelings, or judgments, rather than on objective data or evidence.

Pencil-and-Paper Tests

Traditional forms of assessments or examinations where responses are written or selected on paper, often used for educational or psychological testing.