First Paragraph:

a. an independent trustee, himself as trustee, or his daughter as trustee

b. lower or higher

c. reduced or increased

d. capital gains or kiddie

e. earned or unearned

f. growth assets or income-producing assets

g. growth assets or income-producing assets

Next Paragraph:

h. growth assets or net capital gains

i. greater or lesser

j. higher or lower

k. is or is not

l. will or will not

3rd Paragraph:

m. insurance on woody's life or tax-exempt securities

n. his legal obligations or the trust's obligations

o. does or does not

4th Paragraph:

p. is or is not

q. gross income or non-taxable income

r. are or are not

Thank you!

Woody wants to transfer some of the income from his investment portfolio to his daughter Wendy, age 12 . Woody wants the trust to be able to accumulate income on Wendy's behalf and to meet any excessive expenses associated with her chronic medical conditions. Furthermore, Woody wants the trust to protect Wendy against his own premature death without increasing his Federal gross estate. Thus, Woody provides the trustee with the powers to purchase insurance on his life and to meet any medical expenses that Wendy incurs. The trust is created in 2019. A whole life insurance policy with five annual premium payments is purchased during that year. The trustee spends $30,000 for Wendy's medical expenses in 2022 (but in no other year). Woody dies in 2023. Complete the following paragraph regarding whether the trust has been tax-effective