Marshall places securities in trust for Chase, a minor. The trustee is given discretion concerning...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Marshall places securities in trust for Chase, a minor. The trustee is given discretion concerning the accumulation of income. The income and principal may be expended by or on behalf of Chase. Any principal not expended by age is to pass to Chase. If Chase dies before age the unexpended principal is to pass
to Chase's estate. Under these circumstances, which of the following statements concerning federal gift taxes is correct?
a Chase has only a future interest.
b If Marshall had specified age rather than age Marshall would have lost the benefit of the annual exclusion.
c The gift tax annual exclusion is not available for the gift to the trust.
d The gift in trust is a presentinterest and not subject to federal gift taxes.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
