Classify Each Statement Appearing Below

question 196

Short Answer

Classify each statement appearing below.
a.No taxable transfer occurs
b.Gift tax applies
c.Estate tax applies
-Under her father's will,Faith is to receive 10,000 shares of GE common stock.Eight months after her father's death,Faith disclaims 5,000 shares.

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Definitions:

Contested Wills

Contested Wills refer to legal disputes over the validity or interpretation of a deceased person's will.

Insurance Agreement

An insurance agreement is a contract between an insurer and the insured, whereby the insurer promises to compensate the insured for specific potential future losses in exchange for a premium.

Insured Party

The party who makes a payment in exchange for payment in the event of damage or injury to property or person.

Risk of Loss

The exposure to potential financial harm or loss of property value, particularly in the case of goods during a transaction.