AAFM CTEP Exam - Topic 3 Question 25 Discussion

Actual exam question for AAFM's CTEP exam

Question #: 25
Topic #: 3

[All CTEP Questions]

In case of Discretionary Discounted Gift Trust, the settlor has the right to receive annual capital payments upto ________ of the original capital. The trust is suitable for individuals who have a liability to ______________ and are happy to make substantial gifts.

A5%; Gift Tax

B8%; Transfer Tax

C8%; Estate Duty

D5%; Inheritance Tax

Show Suggested Answer

Suggested Answer: A

by Elli at Jul 29, 2023, 08:34 PM

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Norah

4 months ago

Makes sense for those making big gifts!

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Xuan

4 months ago

Wait, are we sure about the 5%? Seems low.

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Darrel

4 months ago

Definitely Inheritance Tax, right?

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Kassandra

4 months ago

I thought it was 8%?

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Sunshine

5 months ago

It's 5% for sure!

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Juliann

5 months ago

I’m leaning towards 8% as well, but I can't recall if it was for Estate Duty or Transfer Tax.

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Shakira

5 months ago

I’m a bit confused; I thought it was 5% for Inheritance Tax. Did we cover that in class?

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Myong

5 months ago

I remember practicing a similar question, and I believe it's 8% for Transfer Tax.

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Merlyn

5 months ago

I think the annual capital payments are up to 5%, but I'm not entirely sure about the tax liability part.

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Kimberlie

5 months ago

This seems pretty straightforward to me. Julio is seeking coverage for his wife, unmarried 18-year-old daughter, and 80-year-old father who relies on him. Those all fit the typical definition of dependents, so I'm going to go with answer A.

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Shenika

5 months ago

This is a good one to practice. I'll carefully review the market share, growth, and revenue data to determine the right BCG classification. Gotta make sure I don't miss any details on the exam.

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Veronique

5 months ago

I've got a good feeling about this one. Based on my understanding of how encryption works in storage systems, the data-at-rest encryption for HPE 3PAR StoreServ is most likely happening at the physical disk level. I'll go with that as my answer.

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Marylou

5 months ago

I'm pretty positive that documenting the understanding of internal controls is something auditors must definitely do, right?

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Staci

10 months ago

I'm more interested in the 'Discretionary Discounted Gift Trust' than the actual question. Sounds like a trust fund for indecisive billionaires.

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Mayra

10 months ago

This question is as clear as mud. I'll just guess and say A. 5%; Gift Tax. Hopefully, that's the right answer!

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Jesusita

9 months ago

User 3: I agree with Jesusita, C) 8%; Estate Duty sounds right.

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Arthur

9 months ago

User 2: I'm not sure, but I'll go with C) 8%; Estate Duty.

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Ula

9 months ago

User 1: I think the answer is D) 5%; Inheritance Tax.

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Cassie

10 months ago

Wait, is this a trick question? I'm going to go with B. 8%; Transfer Tax. Sounds like the most reasonable option to me.

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Shenika

9 months ago

I agree with you, B. 8%; Transfer Tax sounds like the right answer.

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Shay

9 months ago

I'm going with A. 5%; Gift Tax. It seems like the safest choice.

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Marci

10 months ago

I think it's D. 5%; Inheritance Tax. That makes more sense to me.

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Janessa

11 months ago

Hmm, I'm not sure about this one. I'm leaning towards D. 5%; Inheritance Tax, but I could be wrong.

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Genevive

9 months ago

I agree with you, D) 5%; Inheritance Tax sounds correct.

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Roy

9 months ago

I believe it's A) 5%; Gift Tax.

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Lucy

10 months ago

I think it's actually C) 8%; Estate Duty.

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Ronny

11 months ago

I think the answer is C. 8%; Estate Duty. That makes the most sense to me.

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Annett

9 months ago

I'm not sure, but A. 5%; Gift Tax could also be a possibility.

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Jestine

9 months ago

I'm leaning towards B. 8%; Transfer Tax as the answer.

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Janine

9 months ago

I think it might be D. 5%; Inheritance Tax instead.

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Louann

9 months ago

I agree, C. 8%; Estate Duty seems like the correct answer.

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Reed

9 months ago

I'm not sure, but I think it could be B. 8%; Transfer Tax.

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Charisse

9 months ago

I agree with you, C. 8%; Estate Duty seems like the correct answer.

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Evangelina

10 months ago

I think it might be A. 5%; Gift Tax.

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Margurite

10 months ago

I believe the answer is D. 5%; Inheritance Tax.

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Berry

11 months ago

I'm not sure about this one. Can someone explain why the answer is D) 5%; Inheritance Tax?

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Weldon

11 months ago

I agree with Ayesha. The settlor can receive annual capital payments up to 5% of the original capital in a Discretionary Discounted Gift Trust.

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Ayesha

11 months ago

I think the answer is D) 5%; Inheritance Tax.

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