Reference no: EM133000899

Problem 1: Which of the following meets the requirements of a gift subject to the gift tax?

A. A donor writes a check for $20,000 payable to the donee but forgets to mail it

B. A donor writes a check for $20,000 payable to the donee and specifies how, when, and in what way the donee is to use the money

C. A donor writes a check for $20,000 payable to the donee. The donee receives the check and accidentally tears it up

D. A donor misplaces a check. The donee finds the check and endorses to himself for $20,000

Problem 2: Which of the following is true with respect to the generation-skipping transfer (GST) tax?

I. The annual exclusion is a generation-skipping transfer.

II. The GST is adjusted for inflation.

III. The GST exclusion amount is always equal to the lifetime gift tax exclusion amount.

A. II only

B. I and II

C. II and III

D. I, II and III