Identify Which of the Following Statements Is True

question 2

Multiple Choice

Identify which of the following statements is true.

• A)Reversionary interests of less than 5% are includible in the gross estate.
• B)A reversionary interest means a chance exists that the property may pass back to the transferor under the terms of the transfer.
• C)If a reversionary interest exceeds 3% of the property's value, the amount that is included in the estate is not the value of the reversionary interest, but rather the date-of-death value of the gifted property less the value of intervening life estates.
• D)All of the above are false.

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Definitions:

Federal Agency

A government body established by Congress to implement and administer particular federal laws and programs.

Power

The ability or capacity to do something or act in a specific way, often referring to the capability to influence or direct behaviors of individuals or groups.

Hybrid Agencies

Organizations that operate across both public and private sectors, or that combine elements of governmental and non-governmental organizations.

Characteristics

Distinctive traits or features that define a person, object, or concept.