Classify Each Statement Appearing Below

question 85

Short Answer

Classify each statement appearing below.
a. No taxable transfer occurs
b. Gift tax applies
c. Estate tax applies
-Howard establishes a trust, life estate to his children, remainder to the grandchildren. Under its terms, the trust is revocable by Howard.

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Definitions:

Weightlifters

Individuals who engage in the sport or activity of lifting heavy weights as a form of physical exercise or in competition.

Pyramid Scheme

A fraudulent investment scam based on a hierarchical setup of network marketing, where profit is made primarily by enlisting other people into the scheme.

Power Lifters

Athletes who compete in powerlifting, a strength sport consisting of three attempts at maximal weight on three lifts: squat, bench press, and deadlift.

Intermediate Lifters

Individuals who have surpassed the novice stage in weightlifting and have developed a moderate level of strength and proficiency in lifting techniques.