Identify Which of the Following Statements Is False

question 105

Multiple Choice

Identify which of the following statements is false.

• A)The gift-splitting election will apply to all transfers made during the portion of any year that the spouses electing gift splitting are married to each other.
• B)The gift-splitting election is made separately on each gift either spouse makes.
• C)Making gifts during one's lifetime helps to reduce the amount of estate taxes owed at death.
• D)In order to use gift splitting, both spouses must be U.S. citizens or residents at the time of the transfer.

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Definitions:

Reciprocity/Obligation Rule

The social norm of responding to a positive action with another positive action, fostering mutual benefit.

Rejection-Then-Retreat Approach

A persuasive technique where an initially larger request is made knowing it will be rejected so that a smaller request (the desired outcome) seems more reasonable.

Reciprocity

A social principle where positive actions lead to similar responses by others, fostering mutual benefit or exchange.

Consensus

General agreement among the members of a group or community.