Which of the following is NOT an example of negative debt covenants?
1) Specifying a minimum debt service cover.
2) Restrictions on amalgamation with other companies.
3) Supplying creditors with annual audited reports.
4) Limiting annual dividend payments to shareholders.
2. Maxwell died August 8, 2017. Of the following transfers made during his life, which is included in his gross estate?
a The transfer of a whole life insurance policy on Maxwell’s life to an ILIT on September 16, 2013.
b The sale of his term insurance policy to his brother, Donald, for fair market value on August 12, 2013.
c The transfer of a whole life insurance policy on Maxwell’s life (face value $150,000) valued at $20,000 to his son on September 16, 2015.
d A gift of $14,000 to Maxwell’s sister on August 7, 2017. No gift tax was due on the gift.
3. Transfers to irrevocable trusts are treated as completed gifts and are subject to gift tax.
True
False