Answer the following statements true (T) or false (F)
1. Mike transfers securities to an irrevocable trust and gives Rachel the power to determine who will receive the trust's income and assets. Rachel, her estate, and her creditors cannot be beneficiaries or receive the trust assets. Rachel has a general power of appointment.
2. A "Crummey demand power" in a trust document allows the donor to demand a distribution from the trust in years in which earnings exist within the trust.
3. Gift tax returns are filed on a calendar-year basis.
4. The purchase of a $20,000 engagement ring generates a taxable gift necessitating the filing of a gift tax return.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
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If the net present value of a proposed investment is negative, it means that the investment should not be made
Indicate whether the statement is true or false
A certain state in the United States declares that its citizens should only wear "modest" clothing. Which of the following conclusions is made when this law is tested for substantive due process?
A. unconstitutional for compulsion B. invalid for violation of the Equal Protection Clause C. void for vagueness D. invalid for violating freedom of expression
The consumer price index is
A. a monthly price index that is designed to measure changes in prices for goods sold in primary markets. B. a quarterly price index that uses 100 as a base. C. a monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time. D. another name for the Paasche index.
The federal government's power to tax is subject to three major limitations
a. True b. False Indicate whether the statement is true or false