American College Exam HS330 Topic 1 Question 9 Discussion

Actual exam question for American College's HS330 exam

Question #: 9
Topic #: 1

All the following statements concerning a grantor-retained annuity trust (GRAT) or a grantorretained unitrust (GRUT) are correct EXCEPT:

AAfter the initial transfer to a GRAT, the grantor is prohibited from making additional contributions to the trust.

BFor gift tax purposes a grantor's retained interest in these trusts is valued at zero.

CPost-transfer appreciation of property transferred to these trusts is excluded from the grantor's gross estate.

DA grantor receives an annual payout from a GRUT that is based on the value that the trust grows or contracts to each year.

Show Suggested Answer

Suggested Answer: B

by Glenna at May 05, 2022, 10:32 PM

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