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

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20 hours ago

I think option C is the correct answer. The GSTT exemption is not $1.5 million, it's much higher.

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16 days ago

I disagree, I believe the answer is D because the tax rates are similar to estate and gift tax rates.

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19 days ago

I agree with Sharen, the $1.5 million exemption seems incorrect.

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24 days ago

I think the answer is C.

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