This Year Anthony Transferred $250,000 of Bonds to a Trust

question 139

Multiple Choice

This year Anthony transferred $250,000 of bonds to a trust with directions to the trustee to pay income to his son for the next 20 years. After 20 years the trust corpus would revert to Anthony. Which of the following is a true statement?

• A)Anthony has made a $250,000 gift.
• B)Anthony has made a $235,000 taxable gift.
• C)Anthony has not yet made a complete gift.
• D)Anthony has made a complete gift of the income interest only.
• E)None of the choices are true.

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Definitions:

Cultures

The shared beliefs, practices, symbols, language, art, and values of a group of people, passed down from generation to generation.

Sororal Polygyny

A form of polygyny where a man is married to multiple wives who are sisters to each other, often practiced in some polygamous societies to strengthen family bonds.

Co-Wives

Women who are married to the same man at the same time, often in cultures that practice polygamy.

Sisters

Female siblings shared by one or both parents, also referring to a close bond between women not related by blood.