Tia Funds an Irrevocable Trust with $100,000, Naming Vonda to Receive

question 72

Multiple Choice

Tia funds an irrevocable trust with $100,000, naming Vonda to receive income for life. Tia also grants Vonda a general power of appointment during her life. During the next year, Vonda directs the trustee to give $100,000 to Rick. Which of the following statements is not correct?

• A)Tia made a $100,000 gift to Rick.
• B)Vonda makes a $100,000 gift to Rick.
• C)Tia has made a gift of $100,000 to Vonda.
• D)Exercising a general power of appointment constitutes a gift.

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Definitions:

Dichloromethane

A chemical compound with the formula CH2Cl2, widely used as an organic solvent due to its volatility and ability to dissolve a wide range of organic compounds.

Reagents

Substances or compounds added to a system to cause a chemical reaction or to see if a reaction occurs.

Transformation

A broad term referring to the process of changing the state, form, or structure of something.

Regio-

A prefix indicating the orientation or specific location within a molecule where a chemical reaction takes place.