Which of the Following Statements About the Portability of the Unified

question 33

Multiple Choice

Which of the following statements about the portability of the Unified Transfer Tax Credit (UTTC) is true?

• A) When the first spouse dies, then any unused applicable exclusion amount (AEA)  will carry over to the other spouse.
• B) When the first spouse dies, then any unused applicable exclusion amount (AEA)  will carry over to the government.
• C) When the first spouse dies and is left with an excess amount after using the applicable exclusion, then the excess amount will carry over to a trust.
• D) It is a method of reducing gift taxes with the consent of the other spouse in which the gift can be treated as if each had been given one-half of it.
• E) It is a method of transferring assets between spouses, either by gift or through estate.

---

Definitions:

Consistency Motive

The inherent desire or drive within individuals to maintain uniformity and coherence among their beliefs, attitudes, and behaviors.

Self-Verification Motive

The drive to confirm one's self-concept by seeking out and interpreting information that aligns with one's existing beliefs about oneself.

Justification Motive

The psychological drive to rationalize one's actions, beliefs, or decisions, often to preserve self-esteem or avoid cognitive dissonance.

Appraisal Motive

The drive to understand oneself and others, assessing motivations, emotions, and behaviors for comprehension.