Martha Inherits Unimproved Land (Fair Market Value of $3 Million)from

question 98

Multiple Choice

Martha inherits unimproved land (fair market value of $3 million) from her father on June 1,2008.Martha disclaims her interest in the property as follows: one-third on December 1,2008;one-third on January 1,2009;and the remaining one-third on May 31,2009.In all cases,the disclaimers pass the interest to her son (the next heir under state law) .The Federal gift tax applies to Martha for:

• A)All of the disclaimers.
• B)The disclaimer made in 2008.
• C)The disclaimers made in 2009.
• D)The May 31,2009 disclaimer.
• E)None of the disclaimers.

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Definitions:

Rational Thought

The process of thinking that is grounded in logic and reason, often characterized by the ability to make clear, reasoned decisions and judgments.

Gender Bias

The tendency to prefer one gender over another, which can manifest in various social, professional, and educational contexts, leading to unequal treatment or perceptions based on gender.

Subjective Utility

The perceived value or benefit of an action or choice to an individual, based on personal preferences and feelings.

Expected Value

A statistical concept representing the average outcome of a random event when the process is repeated many times.