Identify which of the following statements is false.
A)A gift occurs when a revocable trust is funded.
B)A gift does not occur until the transfer is complete.
C)A transfer is incomplete (and not subject to the gift tax)if the donor retains the power to name new beneficiaries or to change the interests of the beneficiaries.
D)Transfers to an irrevocable trust can be deemed incomplete.

Question

Quizplus · Accepted Answer

A gift occurs when property is transferred from one party to another without consideration (i.e. without receiving something of equal value in return). Funding a revocable trust does not necessarily result in a completed gift, as the grantor retains the ability to revoke the trust and take back the assets. The transfer is complete when the grantor has irrevocably surrendered dominion and control over the property, and the trust is considered irrevocable.

Identify Which of the Following Statements Is False