Question
Loretta's will establishes a by-pass trust at her death which also gives her husband Rex a right to exercise a general power according to an
Loretta's will establishes a by-pass trust at her death which also gives her husband Rex a right to exercise a general power according to an ascertainable standard. How much of the trust corpus will be included in Rex's estate at his death?
a. | The full fair market value of the trust is included in Rex's gross estate. | |
b. | No amount attributed to the trust is included in Rex's gross estate. | |
c. | The greater of $5,000 or 5% of the trust corpus is included in Rex's gross estate. | |
d. | The amount subject to the general power of appointment is included in Rex's gross estate. |
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