Doris, 55, has $100,000 in liquid assets that she would like to transfer to her nephew, Matt, 22, for his comfort and welfare. Doris would like Matt to receive the income produced by these assets annually until he is 35. At that time, she would like to give the assets to him outright. Which one of the following is the most appropriate lifetime transfer technique for Doris to use to achieve her objectives? A) A gift of the assets under the provisions of the Uniform Gifts to Minors Act B) An Internal Revenue Code Section 2503(c) trust C) A 13-year reversionary trust D) An Internal Revenue Code Section 2503(b) trust
Doris, 55, has $100,000 in liquid assets that she would like to transfer to her nephew, Matt, 22, for his comfort and welfare. Doris would like Matt to receive the income produced by these assets annually until he is 35. At that time, she would like to give the assets to him outright. Which one of the following is the most appropriate lifetime transfer technique for Doris to use to achieve her objectives? A) A gift of the assets under the provisions of the Uniform Gifts to Minors Act B) An Internal Revenue Code Section 2503(c) trust C) A 13-year reversionary trust D) An Internal Revenue Code Section 2503(b) trust
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Doris, 55, has $100,000 in liquid assets that she would like to transfer to her nephew, Matt, 22, for his comfort and welfare. Doris would like Matt to receive the income produced by these assets annually until he is 35. At that time, she would like to give the assets to him outright.
Which one of the following is the most appropriate lifetime transfer technique for Doris to use to achieve her objectives?
A)
A gift of the assets under the provisions of the Uniform Gifts to Minors Act
B)
An Internal Revenue Code Section 2503(c) trust
C)
A 13-year reversionary trust
D)
An Internal Revenue Code Section 2503(b) trust
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