A State Tax Levied on the Right of an Heir

question 59

Multiple Choice

A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ____________ tax.

• A) estate income
• B) trust income
• C) inheritance
• D) gift
• E) estate

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Definitions:

Bills Of Exchange Act

Legislation governing the creation, transfer, and payment of bills of exchange, a type of negotiable instrument.

Cheque

A bill of exchange that is drawn on a banking institution, and payable on demand.

Drawer

In the context of banking and finance, a drawer is the person who writes or issues a check, directing a bank to pay the stated amount from the drawer's account.

Payee

The individual or entity to whom money is payable or is meant to be paid, typically named in financial documents like checks or promissory notes.