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.

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Definitions:

Plaintiff

The party who initiates a lawsuit in civil court proceedings.

Defendant

A person or entity against whom a lawsuit is filed in a court of law.

Reasonable Person Test

A legal standard used to determine what a typical, prudent person would have done in similar circumstances, applied in various legal contexts.

Surety Bond

Insurance arranged in case a party to a contract fails to perform.