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:

Criminal Fraud

The act of deliberately deceiving another individual or entity with the intention of causing damage, often financial.

Damages

A monetary compensation awarded to an individual for loss or injury as a result of the act or omission of another.

False Representation

A deceitful statement or action made to induce someone into an agreement or situation that benefits the perpetrator.

Fourth Amendment

Part of the United States Constitution, it protects citizens against unreasonable searches and seizures, requiring a warrant issued upon probable cause.