Facts: G is in the process of creating a trust which pays income for life to each of G's 2 children, S and D, remainder to G's grandchildren. G retains the power to distribute principle to S and D, subject to a reasonably definite health and support standard. G is considering retaining the power to add the spouses of S and D, if they marry, to the class of beneficiaries. Alternatively, G is considering retaining the power to add only after-born or adopted children of G,S, and D to the class of beneficiaries.

a) What are the tax consequences to the trust and the grantor of the retained power to distribute principle to S and D?

b) What are the tax consequences to the trust and the grantor of the proposed retained power to add the spouses of S and D as trust beneficiaries?

c) What are the tax consequences to the trust and the grantor of the proposed retained power to add only after-born or adopted children of G, S, and D as trust beneficiaries?