Identify Which of the Following Statements Is True

question 63

Multiple Choice

Identify which of the following statements is true.

• A)The creation of a joint bank account constitutes a taxable gift.
• B)The creation of a joint tenancy by one person will result in a gift equal to the other joint tenant's pro rata interest in the property.
• C)The naming of a life insurance policy beneficiary constitutes a gift for transfer tax purposes.
• D)Since municipal bond interest is exempt from federal income taxation, gifting the bonds escapes the gift tax.

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Definitions:

Federal District Courts

The trial courts of the federal court system in the United States, where civil and criminal cases are filed.

Initial Client Interview

The first meeting between a lawyer and a potential client to discuss the client's legal issues and how the lawyer may assist.

Paralegal

A trained legal assistant who performs various tasks to support lawyers, including legal research, drafting documents, and organizing files, but is not qualified to offer legal advice or represent clients.

Attorney

A person licensed to practice law and represent clients in legal matters.