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

Limited Time Offer

25%

Off

Get Premium HS330 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jillian

1 months 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.

upvoted 0 times

...

Viva

1 months ago

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

upvoted 0 times

...

Mona

1 months ago

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

upvoted 0 times

Kizzy

6 days ago

User 3: The wealthy have ways to avoid those taxes anyway.

upvoted 0 times

...

Ressie

12 days ago

User 2: I know, they probably don't even notice it.

upvoted 0 times

...

Corinne

18 days ago

User 1: Yeah, $1.5 million is nothing to them.

upvoted 0 times

...

3 months ago

I think the answer is C.

upvoted 0 times

...