Identify Which of the Following Statements Is False

Identify which of the following statements is false.

A) A power of appointment exists when a person transfers property and grants someone else the power to specify who eventually will receive the property.
B) The donor must recognize as a gain the excess of the gift tax payable over the adjusted basis of the property.
C) The donee's payment of the gift tax does not reduce the amount of the gift because it is treated as consideration paid to the donor.
D) A person possesses a general power of appointment if the person has the power to appoint property to himself, his creditors, his estate, or the creditors of his estate.

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