4. Marcelle, age 48, wants to provide for the financial security of her friend, Jamie, and other unrelated friends. She establishes a trust. Jamie, age 70, will receive income from the trust for her life. Upon Jamies death, Darren, another friend who is currently 50, will receive income for his lifetime. Upon his death, the remainder interest will be divided equally between Marcelles nephews, Carl (age 8) and J.D. (age 6). How many times will this trust be subject to a GSTT?

a. None. No GSTT will be assessed.

b. One.

c. Two.

d. Three.

5. Which of the following types of transfers are subject to GSTT?

1. Indirect skips.

2. Terminations of trusts with skipped and non skipped persons leaving only skipped persons.

3. Distributions to skipped persons.

a. 1 only.

b. 1 and 2.

c. 2 and 3.

d. 1, 2, and 3.

6. Which of the following gifts made by Tristan, age 49, is subject to the generation-skipping transfer tax?

a. $15,000 to his grandson.

b. $20,000 to his niece, age 6.

c. Payment of medical school tuition of $50,000 for the granddaughter of Joe, Tristans best friend.

d. $20,000 to the daughter (age 6) of Tristans former college roommate.