Which of the following statements is true?
A)Transfers to an irrevocable trust can be deemed incomplete due to powers retained by the grantor.
B)If the donor retains the power to change the trust beneficiary, the gift is complete.
C)Transfers to a revocable trust are completed gifts.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Transfers to an irrevocable trust can potentially be deemed incomplete if the grantor retains certain powers, such as the power to change the trustee or revoke the trust. This means the assets transferred may still be considered part of the grantor's estate for tax purposes. Option B is false since the power to change the trust beneficiary means the donor has not fully relinquished control over the transferred assets. Option C is also false because transfers to a revocable trust can be changed or revoked by the grantor at any time, making them incomplete gifts.

Which of the Following Statements Is True