Classify Each of the Following Statements

question 7

Multiple Choice

Classify each of the following statements.
-Howard establishes a trust, life estate to his children, remainder to the grandchildren. Under its terms, the trust is revocable by Howard. Howard later relinquishes the right to revoke the trust.

• A)No taxable transfer occurs.
• B)Gift tax applies.
• C)Estate tax applies.

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Definitions:

Objectivity

The state or quality of being true even outside of a subject's individual biases, interpretations, feelings, and imaginings.

Retaliation

The action of returning a military attack; counterattack or the act of seeking revenge upon another.

Misconduct

Improper or unethical behavior by an individual, particularly in a professional context, that violates established norms or regulations.

Ethical Cultures

The collective ethos and ethical orientation that characterize the environment of a business organization, influencing its decision-making and relationships.