Identify Which of the Following Statements Is False

question 54

Multiple Choice

Identify which of the following statements is false.

• A)A gift occurs when a revocable trust is funded.
• B)A gift does not occur until the transfer is complete.
• C)A transfer is incomplete (and not subject to the gift tax)if the donor retains the power to name new beneficiaries or to change the interests of the beneficiaries.
• D)Transfers to an irrevocable trust can be deemed incomplete.

---

Definitions:

Cognitive Limits

The boundaries or constraints on a person's mental abilities, such as memory capacity, attention span, and the ability to process information.

Serial Processing

The act of processing information in a sequential manner, one operation at a time.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, a fundamental method of information processing in the human mind.

Overextension

A language development error in which a child applies a word too broadly, beyond its appropriate context.