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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Ronny

1 days ago

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

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Berry

10 days ago

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

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Weldon

14 days 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

17 days ago

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

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