Which of the Following Is a True Statement

question 60

Multiple Choice

Which of the following is a true statement?

• A) Leaving all property to the surviving spouse maximizes the marital deduction and therefore minimizes total transfer taxes on the estates of both spouses.
• B) A bypass provision in the will of the deceased spouse is designed to use the unified credit of the deceased spouse by transferring property to beneficiaries other than the surviving spouse.
• C) Serial gifts are limited in scope because only $10,000 can be transferred each year tax-free to any specific donee.
• D)Serial gifts can move significant amounts of wealth only if employed by multiple donors.
• E)None of these

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Definitions:

Security Interest

A legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt.

Consumer Goods

Products that are purchased for personal or household use, rather than for manufacturing or reselling.

Priority Rule

A principle that establishes the order in which claims or legal rights are to be enforced or satisfied.

Secured Party

An individual or entity that has an interest, usually a collateral interest, in the personal property of a debtor.