AAFM Exam CTEP Topic 3 Question 25 Discussion

Actual exam question for AAFM's CTEP exam

Question #: 25
Topic #: 3

[All CTEP Questions]

In case of Discretionary Discounted Gift Trust, the settlor has the right to receive annual capital payments upto ________ of the original capital. The trust is suitable for individuals who have a liability to ______________ and are happy to make substantial gifts.

A5%; Gift Tax

B8%; Transfer Tax

C8%; Estate Duty

D5%; Inheritance Tax

Show Suggested Answer

Suggested Answer: A

by Elli at Jul 29, 2023, 08:34 PM

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Staci

1 months ago

I'm more interested in the 'Discretionary Discounted Gift Trust' than the actual question. Sounds like a trust fund for indecisive billionaires.

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Mayra

1 months ago

This question is as clear as mud. I'll just guess and say A. 5%; Gift Tax. Hopefully, that's the right answer!

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Jesusita

10 days ago

User 3: I agree with Jesusita, C) 8%; Estate Duty sounds right.

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Arthur

17 days ago

User 2: I'm not sure, but I'll go with C) 8%; Estate Duty.

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Ula

23 days ago

User 1: I think the answer is D) 5%; Inheritance Tax.

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Cassie

2 months ago

Wait, is this a trick question? I'm going to go with B. 8%; Transfer Tax. Sounds like the most reasonable option to me.

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Shenika

8 days ago

I agree with you, B. 8%; Transfer Tax sounds like the right answer.

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Shay

19 days ago

I'm going with A. 5%; Gift Tax. It seems like the safest choice.

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Marci

1 months ago

I think it's D. 5%; Inheritance Tax. That makes more sense to me.

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Janessa

2 months ago

Hmm, I'm not sure about this one. I'm leaning towards D. 5%; Inheritance Tax, but I could be wrong.

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Genevive

21 days ago

I agree with you, D) 5%; Inheritance Tax sounds correct.

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Roy

22 days ago

I believe it's A) 5%; Gift Tax.

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Lucy

28 days ago

I think it's actually C) 8%; Estate Duty.

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Ronny

2 months ago

I think the answer is C. 8%; Estate Duty. That makes the most sense to me.

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Jestine

I'm leaning towards B. 8%; Transfer Tax as the answer.

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Janine

2 days ago

I think it might be D. 5%; Inheritance Tax instead.

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Louann

3 days ago

I agree, C. 8%; Estate Duty seems like the correct answer.

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Reed

17 days ago

I'm not sure, but I think it could be B. 8%; Transfer Tax.

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Charisse

23 days ago

I agree with you, C. 8%; Estate Duty seems like the correct answer.

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Evangelina

28 days ago

I think it might be A. 5%; Gift Tax.

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Margurite

1 months ago

I believe the answer is D. 5%; Inheritance Tax.

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Berry

2 months ago

I'm not sure about this one. Can someone explain why the answer is D) 5%; Inheritance Tax?

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Weldon

2 months ago

I agree with Ayesha. The settlor can receive annual capital payments up to 5% of the original capital in a Discretionary Discounted Gift Trust.

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Ayesha

2 months ago

I think the answer is D) 5%; Inheritance Tax.

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