Discuss American College HS330 Exam Topic 1 Question 53

All the following transfers are subject to the generation-skipping transfer tax (GSTT) EXCEPT:

AA direct cash gift of $50,000 from a grandparent to his grandchild if such grandchild's parents are still alive.

BA direct cash payment of $28,000 from a grandparent to a private prep school to cover the tuition costs for her grandchild.

CA distribution to a grandchild from a sprinkle trust created by a grandparent to benefit both skip and non-skip beneficiaries.

DA termination of a trust at the death of the non skip life income beneficiary with the remainder distributed solely to skip persons.

Suggested Answer: B

Get Premium HS330 Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

11 comments · newest first

Meaghan 11 months ago

I thought all distributions to grandchildren were taxed.

Nieves 11 months ago

The tuition payment is also exempt, right?

Emelda 12 months ago

Wait, are you sure about that? Seems too good to be true.

Toi 12 months ago

Totally agree, that’s a common misconception!

Avery 12 months ago

A direct cash gift of $50,000 is exempt from GSTT if parents are alive.

Selma 1 year ago

This is tricky! I thought all transfers to skip persons were taxed, but maybe D is an exception?

Carey 1 year ago

I’m not entirely sure, but I remember something about direct payments for education not triggering GSTT. Maybe it’s B?

Flo 1 year ago

I think the answer might be A, since the parents are still alive, and that could mean it’s not subject to GSTT.

Pok 1 year ago

I practiced a similar question where distributions from trusts were involved. I feel like C could be the right choice here.

Fatima 1 year ago

The key here is understanding how the fiber type is handled in EPT. I believe the correct answer is B, as a unique fiber type is allowed per design, not per segment.

Kanisha 1 year ago

Okay, I've got a plan. I'd go with option D - separating the regions into business units and applying subscriber filters. That way we can control access at the subscriber level and maintain data integrity across the regions.

American College HS330 Exam - Topic 1 Question 53 Discussion