Classify Each Statement Appearing Below

question 91

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.Fifteen months after her father's death,Faith disclaims the 10,000 shares.

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Definitions:

Avoidance Powers

Legal abilities granted typically to a trustee in bankruptcy to nullify certain transactions made by the debtor before bankruptcy to ensure equitable distribution of assets to creditors.

Bankruptcy Trustee

An individual or corporation appointed in a bankruptcy case to represent the interests of the bankruptcy estate and the creditors.

Debtor's Property

refers to all tangible or intangible assets owned by an individual or entity who owes money to another party.

Fraudulent Transfers

Transactions made with the intention of evading creditors by moving assets out of their reach.