1) Andre established an irrevocable trust to benefit his daughter Lilly for life, and his two grandsons at Lilly's death. He transferred $2 million of income-producing property to the trust and allocated $2 million of his generation skipping tax exemption to the trust. Which statement is correct?

	a.	Distributions made to his grandsons at Lilly's death are taxed at a flat 35% tax rate.
	b.	The grandsons are responsible for paying the generation skipping tax in a taxable termination.
	c.	The trust is an example of an indirect skip trust.
	d.	The trust has an inclusion ratio of one.