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

Select one:

a.

Distributions made to his grandsons at Lillys death are taxed at a flat 40% tax rate.

b.

The grandsons are responsible for paying the GST tax in a taxable termination.

c.

This trust is an example of an indirect skip trust.

d.

The trust has an inclusion ratio of one.