Identify which of the following statements is true.
A)The transferee is liable for the generation-skipping transfer tax (GSTT)in the case of a direct skip.
B)Special use valuation is available for farmland to help alleviate liquidity problems.
C)Qualified disclaimers are not available for estate planning purposes.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Special use valuation is a real estate tax benefit that allows eligible farmland to be valued at its current use, rather than its highest possible use. This helps reduce the estate tax value of the property, which can alleviate liquidity problems for the heirs who inherit the farmland. The other statements are false. The transferor, not the transferee, is liable for the GSTT in the case of a direct skip. Qualified disclaimers can be an effective estate planning tool, allowing a person to disclaim an inheritance in order to redirect it to another beneficiary, but they are not the only available option.

Identify Which of the Following Statements Is True