Classify Each of the Following Statements

question 17

Multiple Choice

Classify each of the following statements.
-Maggie purchased an insurance policy on Jim's life and designated Susan as the beneficiary. Four years later, Jim dies, and Susan collects the insurance proceeds.

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

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Definitions:

Social Anxiety

The fear of social situations that involve interaction with other people, primarily driven by worries of being judged or embarrassed.

Biofeedback

A technique where electronic monitoring of a normally automatic bodily function is used to train someone to acquire voluntary control over that function.

Systematic Desensitization

A behavioral therapy technique used to gradually reduce anxiety and fear through the use of relaxation and exposure to feared stimuli.

Shock Therapy

A form of medical treatment involving the application of electrical current to the brain, often used in psychiatry to treat severe mental disorders.