39. Which of the following statements is true? (a)Angela transferred her home to a OPRT in 2008. She retained the right to live in the home for 13 years, and at the end of the term, the home transfers to Angela's three children. Angela dies in 2011, when the home has a fair market value of $250,000. The value of the home is excluded from Angela's gross estate because the children are the remainder beneficiaries of the QPRT. (b) Missy transfers rental property to a Family Limited Partnership (FLP) in return for a 99% limited partnership interest and a 1% general partnership interest. Missy immediately begins a gifting program by gifting a portion of the limited partnership interests to her children and grandchildren. Six years after the initial formation of the FLP, Missy continues to own the 1% general partnership interest and 45% of the limited partnership interests in the FLP. Because Missy does not own a majority (greater than 50%) of the interest in the FLP, Missy cannot control the operations of the FLP. (c) Rose has been diagnosed with an illness that is expected to substantially reduce her life expectancy. Before she dies, Rose would like to transfer her extremely valuable art collection to her wealthy daughter. The art collection does not generate any income, as it is just displayed in Rose's home, but Rose really needs money for her living expenses for the remainder of her life. A GRAT would be the most appropriate transfer device to fulfill Rose's desires. (d) Earl has four children - Kenny, Tim, Aaron, and Cathy. Earl's will directs all of his property to be divided equally among his four children, and if any child predeceases Earl, that child's heirs will inherit Earl's property per capita. Earl has an estate worth approximately $10 million and is 79 years old. A private annuity strategy may be a good option for him to consider to reduce his exposure to Federal Estate Tax