Classify each of the following statements.
-Using his own funds, Horace establishes a savings account designating ownership as follows: "Horace and Nadine as joint tenants with right of survivorship." Nadine predeceases Horace.
A)No taxable transfer occurs.
B)Gift tax applies.
C)Estate tax applies.

Question

Quizplus · Accepted Answer

When Horace establishes a savings account with Nadine as joint tenants with right of survivorship and Nadine predeceases Horace, no taxable transfer occurs because the entire property automatically passes to Horace by operation of law, without going through probate or being subject to estate or gift tax at the time of Nadine's death.

Classify Each of the Following Statements