Which of the Following Transactions Constitutes a Completed Gift Made

question 40

Multiple Choice

Which of the following transactions constitutes a completed gift made by Ellen, a widow, in the current year?

• A)Ellen deposits $100,000 cash and Matt deposits $5,000 cash into a joint savings account. Matt does not withdraw anything during the current year.
• B)Ellen names Larry the beneficiary of a $100,000 life insurance policy on Ellen's life. The beneficiary designation is revocable.
• C)Ellen transfers property to a revocable trust, naming the bank as trustee. The trustee must pay out all the income to Ed over Ed's lifetime, beginning next year.
• D)Ellen reimburses her granddaughter $15,000 for her tuition at medical school.

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Definitions:

Unconscious Mental Image

Visual or symbolic representations in the mind that are not immediately accessible to conscious awareness.

Free Association

Method of uncovering unconscious conflicts in which the client is taught to talk about whatever comes to mind, without censoring any thoughts.

Humanistic

An approach in psychology that emphasizes empathy and stresses the good in human behavior, focusing on the individual's potential for growth and self-actualization.

Innate Capacity

An inherent ability or potential present from birth, not developed through experience.