Rex Ford established an irrevocable trust for the benefit of his two adult children. Rex named himself as trustee, and provided that trust income was to be distributed at the sole discretion of the trustee. At the end of the ten-year trust term, the corpus and any undistributed income is to be distributed equally to his two children.

Which of the following statements regarding this trust are correct?

Rex will be entitled to two annual exclusions when the trust is funded.

This is an example of a complex trust.

Distributions at the end of the trust term will be subject to gift tax.

If Rex dies while acting as trustee, the trust assets will be included in his gross estate.

II only

I and III only

II and IV only

I, III, and IV only