Identify Which of the Following Statements Is True

question 89

Multiple Choice

Identify which of the following statements is true.

• A)An individual cannot be both a tier-1 and tier-2 beneficiary in the same year.
• B)Tier-2 beneficiaries potentially can receive more favorable tax treatment than tier-1 beneficiaries.
• C)Bequests of specific sums of money when distributed out of an estate result in the recognition of gross income by the beneficiary receiving the bequest.
• D)All of the above are false.

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Definitions:

Assignment Situations

Circumstances in which rights or duties under a contract are transferred from one party to another.

Assignability

The capability of a contract or right to be transferred from one party to another.

Contractual Obligations

Refers to the legally enforceable promises and duties that parties agree upon in a contract.

Legal Restrictions

Laws or regulations that limit or regulate certain activities or behaviors in order to protect public interest.