Estate Planning

Please provide little explanation with the answers.

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1- A woman is the income beneficiary of an irrevocable trust. Which of the following powers held by her with respect to the trust will cause all the assets in the trust to be included in her gross estate for federal estate tax purposes.

(A) The power to direct the trustee to pay her the greater of 5% of the trust principal or $5,000.

(B) The power to direct the trustee to use the trust assets to pay her estate taxes.

(C) The testamentary special or limited power to direct the trustee to distribute trust assets to her children.

(D) The power to use trust assets for her health, education, support or maintenance.

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2- Which of the following statements concerning the generation-skipping transfer tax (GSTT) is (are) correct?

I.The rate of the GSTT is equal to the estate tax bracket of the transferor.

II.The tax applies to both inter vivos and at-death transfers.

(A) I only.

(B) II only.

(C) Both I and II.

(D) Neither I nor II.

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3- Jake and Hannah have been married for 45 years at the time of Jakes death. They have two surviving adult children, Susie and Tony. All the following transfers from Jakes estate to Hannah are nondeductible terminable interests for federal estate tax marital deduction purposes EXCEPT:

(A) A rental property if Hannah survives Jake by 6 months.

(B) A mountain getaway cottage that passes to Susie if Hannah remarries.

(C) An income interest in a trust over which Hannah has a special power of appointment.

(D) A valuable oil painting for Hannahs lifetime that passes to Tony at her death.