$1.$A client, age $72,$ transferred $$1$ million of his rapidly appreciating stock to a GRAT with a $6$year term and named his daughter the trust beneficiary. Based on the client$$s age and the section $7520$ rate, the client will receive a $10\%$ annuity payout of $$100,000$ annually from the GRAT. The value of his annuity interest is $$411,850.$ Which statement is NOTcorrect?

Group of answer choices

The client has made a taxable gift of $$588,150$ to daughter.

If the client needs more income from this trust, he can contribute more stock to the trust the following year.

If the trust does not produce adequate income to pay the annuity stream, the trust principal must be invaded to fund the annuity payment.

Assume the client outlives the trust terms and the stock has appreciated to $$1\mathrm{.}5$ million in $6$ years. The client will not pay a gift tax on the appreciation at the time the trust passes to the client's daughter.

$2.$Danny, with his three brothers, is a beneficiary of a family trust. This year the trust generated $$400,000$ in income which was distributed to the beneficiaries. Danny received $$75,000,$ his youngest brother received $$125,000,$ and his other two brothers received $$100,000$ each. What provision in the trust document allowed the trustee to make this uneven distribution of trust income?

Group of answer choices

An asset protection provision.

A sprinkling provision.

A $5$and$5$ provision.

A general power of appointment provision.

$3.$Christine has an estate valued at $$18$ million. Her estate plan is to transfer the maximum exemption equivalent amount to a bypass trust and transfer the remainder of her estate to a QTIP trust to benefit her husband Nigel and her two children from a former marriage. Which statement is correct?

Group of answer choices

The assets transferred to both trusts will qualify for a marital deduction in Christine's estate.

The children as remainder beneficiaries in both trusts may be given direct control over a portion of the income and assets in each trust while Nigel is alive.

All of Christine's assets will bypass inclusion in Nigel's gross estate at his death.

Nigel can be given a $5$and$5$ power in the QTIP trust and a special power of appointment over the assets in the bypass trust.

$4.$Jesse and Cameron were divorced three years ago and Cameron has custody of their two young children. Cameron recently remarried and has met with an attorney to create a new will that benefits her children and her new husband. Which issue should Cameron address prior to executing a new will?

Group of answer choices

Cameron should provide Jesse with property interests in the will that are equal to the state's elective share statute.

Cameron should provide a nominal amount for Jesse in the will to prevent him from contesting the will as a pretermitted heir.

Cameron should consult with Jesse to choose personal and financial guardians for the children.

Cameron should change the beneficiary of her life insurance policy from Jesse to her new husband in her will.