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:

AThe transfer of the remainder interest in the trust is a current gift for gift tax purposes.

BWhen the trust is created, the grantor makes an irrevocable transfer to remainder person(s).

CThe grantor's applicable credit amount may be applied to the gifted remainder interest in the trust.

DWhen the grantor dies during the retained interest term, the estate tax benefits are increased.

Show Suggested Answer

Suggested Answer: A

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

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4 days ago

But doesn't the grantor retain an interest in the trust with a GRUT?

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8 days 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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8 days ago

I disagree, I believe the correct answer is A.

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13 days ago

I think the answer is D.

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