Jordan is a widower who consulted Tre, a CFP professional, for advice with respect to her financial and estate planning goals. Jordan told Tre that she has just updated her estate plan and has executed a will and a trust, a durable power of attorney, health care power of attorney, and a health care proxy. Jordan reports that she is the trustee of her trust while she is alive and has named her son Billy as the successor trustee if she were unable to serve as trustee for any reason. She also reports that she is a trust beneficiary while she is alive. Jordan does not understand her estate plan and wants Tre to help her understand it. Which of the following statements that Tre makes to Jordan is correct?

I. Jordan has executed a revocable trust and she may change the terms of her trust at any time.

II. Any assets that Jordan places in the trust during her lifetime will not be subject to probate and will be included in her taxable estate at her death.

III. If Jordan becomes incapacitated and Billy serves as successor trustee, she has made a taxable gift to Billy.

IV. The durable power of attorney is needed to allow Billy to assume the management of any trust-owned assets if Jordan were to become incapacitated.

A. I & II

B. II & III

C. I & IV

D. I, III, & IV