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American College Exam HS330 Topic 1 Question 69 Discussion

Actual exam question for American College's HS330 exam
Question #: 69
Topic #: 1
[All HS330 Questions]

All the following statements concerning a grantor-retained unitrust (GRUT) are correct EXCEPT:

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Suggested Answer: A

by Helaine at Apr 26, 2023, 03:51 AM

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Nada
2 months ago
Wait, is this a trick question? I feel like the answer has to be D, but I'm second-guessing myself now. Hmm, maybe I should have studied harder for this exam.
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Britt
1 months ago
C) The grantor's applicable credit amount may be applied to the gifted remainder interest in the trust.
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Lavera
2 months ago
B) When the trust is created, the grantor makes an irrevocable transfer to remainder person(s).
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Dante
2 months ago
A) The transfer of the remainder interest in the trust is a current gift for gift tax purposes.
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Lauryn
3 months ago
D has got to be the right answer. The estate tax benefits wouldn't increase just because the grantor passed away during the retained interest term. Seems pretty straightforward to me.
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Mauricio
2 months ago
C) The grantor's applicable credit amount may be applied to the gifted remainder interest in the trust.
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Jin
2 months ago
B) When the trust is created, the grantor makes an irrevocable transfer to remainder person(s).
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Mila
2 months ago
A) The transfer of the remainder interest in the trust is a current gift for gift tax purposes.
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Kaitlyn
3 months ago
Haha, this question is a real head-scratcher! I'd have to say the answer is D. Can't imagine the estate tax benefits would go up if the grantor kicks the bucket early.
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Rebecka
3 months ago
Hmm, I'm a little unsure about this one. Let me think it through... Ah, I got it! The answer must be D. The estate tax benefits are not increased in that scenario.
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Juliana
24 days ago
Hmm, I'm a little unsure about this one. Let me think it through... Ah, I got it! The answer must be D. The estate tax benefits are not increased in that scenario.
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Chantell
26 days ago
C) The grantor's applicable credit amount may be applied to the gifted remainder interest in the trust.
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Blair
27 days ago
B) When the trust is created, the grantor makes an irrevocable transfer to remainder person(s).
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Maxima
28 days ago
A) The transfer of the remainder interest in the trust is a current gift for gift tax purposes.
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Chauncey
1 months ago
Hmm, I'm a little unsure about this one. Let me think it through... Ah, I got it! The answer must be D. The estate tax benefits are not increased in that scenario.
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Arlyne
1 months ago
C) The grantor's applicable credit amount may be applied to the gifted remainder interest in the trust.
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Kallie
2 months ago
B) When the trust is created, the grantor makes an irrevocable transfer to remainder person(s).
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Melissa
2 months ago
A) The transfer of the remainder interest in the trust is a current gift for gift tax purposes.
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Lindsey
3 months ago
But doesn't the grantor retain an interest in the trust with a GRUT?
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Georgeanna
3 months ago
I'm pretty sure the correct answer is D. The estate tax benefits are not increased when the grantor dies during the retained interest term.
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Edmond
2 months ago
User: I'm pretty sure the correct answer is D. The estate tax benefits are not increased when the grantor dies during the retained interest term.
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Lamonica
2 months ago
C) The grantor's applicable credit amount may be applied to the gifted remainder interest in the trust.
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Nelida
3 months ago
B) When the trust is created, the grantor makes an irrevocable transfer to remainder person(s).
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Carmela
3 months ago
A) The transfer of the remainder interest in the trust is a current gift for gift tax purposes.
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Jackie
3 months ago
I disagree, I believe the correct answer is A.
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Lindsey
3 months ago
I think the answer is D.
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