1. All the following statements concerning irrevocable living trusts are correct, EXCEPT: (A) (B) The transfer of property to the trust constitutes a completed gift. Payment of the federal transfer tax on property placed in the trust is the responsibility of the grantor. Payment of federal income tax on the income from the trust is the responsibility of the grantor. Property placed in the trust is removed from any possible claims by creditors of the grantor. (C) (D) 2. "X" creates a revocable living trust and places $8 million of marketable securities in the trust. "X's daughter is named as the sole beneficiary. Under these circumstances, all the following statements are correct, EXCEPT: (A) (B) No gift is made when the trust is created. All trust income will be taxed to "X," even if it is all paid to the daughter. If "X" should die without revoking the trust, the trust assets will be fully includible in "X's" gross estate. The trust will become irrevocable at "X's" death. If "X" should die in four years, the trust assets would be excluded from "X's" gross estate. (D) (E) 3. Which of the following statements concerning revocable living trusts is correct? (A) Generally, a grantor is motivated to set up a revocable trust for nontax reasons. The assets placed in a revocable trust will be subject to probate administration. The assets placed in a revocable trust are a completed gift. If the revocable trust is established more than 3 years before death, the assets are not includible in the grantor's gross estate