Identify which of the following statements is true.

A. The creation of a joint tenancy by one person will result in a gift equal to the other joint tenant's pro rata interest in the property.
B. Since municipal bond interest is exempt from federal income taxation, gifting the bonds escapes the gift tax.
C. The creation of a joint bank account constitutes a taxable gift.
D. The naming of a life insurance policy beneficiary constitutes a gift for transfer tax purposes.


Answer: A

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