Assume that $D$ and $S$ are married, and that $S$ is a US citizen, for this and the following

questions until indicated otherwise. D was previously married and has two children from

that prior marriage. D plans to leave property in trust rather than outright to $S$ at D$\text{'}$s death.

What advice will you give to $D$ concerning the marital deduction, if the terms of the trust

provide for an income interest to $S$ for her life, with a testamentary power allowing her to

appoint the corpus at S$\text{'}$s death to S$\text{'}$s estate, and in default of appointment, to D$\text{'}$s children

from his first marriage?

Although S$\text{'}$s income interest terminates at her death, her testamentary power qualifies the interest

for the marital deduction as a LEPA under $2056(b)(5).$

Although S$\text{'}$s income interest terminates at her death, her testamentary power qualifies the interest

for the marital deduction as a LEPA under $2056(b)(3).$

S$\text{'}$s interest is a terminable interest and thus not eligible for the marital deduction under $2056($b$)(1).$

To qualify as a LEPA, S actually must exercise her testamentary power.

All of the foregoing statements are true.