Identify Which of the Following Statements Is False

question 68

Multiple Choice

Identify which of the following statements is false.

• A)Every grantor is entitled to a $5.25 million exemption from the GSTT in 2011.
• B)If Greg transfers assets directly to his grandson, this transaction would be an example of a direct skip.
• C)If Shaad transfers property in trust to his son, with the remainder to his grandson, at the death of the son a taxable termination will result.
• D)The GSTT is levied at a flat rate, which is higher than the top rate under the estate tax rate schedule.

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Definitions:

Mean

The arithmetic average of a set of values, calculated as the total of all values divided by the number of values.

Standard Normal

A type of normal distribution with a mean of 0 and a standard deviation of 1.

Area

In mathematics, the extent of a two-dimensional surface within a boundary, measured in square units.

Probability Density

A function that describes the relative likelihood for a continuous random variable to occur at a specific point.