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.