American College Exam HS330 Topic 1 Question 78 Discussion

Actual exam question for American College's HS330 exam

Question #: 78
Topic #: 1

[All HS330 Questions]

All the following statements concerning the generation-skipping transfer tax (GSTT) are correct EXCEPT:

AThe tax may be imposed on direct gifts to grandchildren.

BThe tax may be imposed on gifts in trust to grandchildren.

CAll donors have a cumulative $1.5 million exemption against generation-skipping transfers.

DThe tax is imposed according to a graduated rate schedule similar to the federal estate and gift tax rates.

Show Suggested Answer

Suggested Answer: D

by Twana at Dec 09, 2023, 09:41 AM

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18 days ago

I'm pretty sure all the other statements are correct. This one about the exemption amount being $1.5 million is the only incorrect one.

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19 days ago

Option D is wrong. The GSTT is a flat rate, not a graduated one like the estate and gift tax.

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21 days ago

Haha, $1.5 million? That's chump change! The rich folks are laughing at that puny exemption.

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2 months ago

I think the answer is C.

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