Which of the following statements is true?

(a) Angela transferred her home to a QPRT in 2008. She retained the right to live in the

home for 13 years, and at the end of the term, the home transfers to Angelas three

children. Angela dies in 2011, when the home has a fair market value of $250,000. The

value of the home is excluded from Angelas gross estate because the children are the

remainder beneficiaries of the QPRT.

(b) Missy transfers rental property to a Family Limited Partnership (FLP) in return for a

99% limited partnership interest and a 1% general partnership interest. Missy

immediately begins a gifting program by gifting a portion of the limited partnership

interests to her children and grandchildren. Six years after the initial formation of the

FLP, Missy continues to own the 1% general partnership interest and 45% of the

limited partnership interests in the FLP. Because Missy does not own a majority

(greater than 50%) of the interest in the FLP, Missy cannot control the operations of

the FLP.

(c) Rose has been diagnosed with an illness that is expected to substantially reduce her

life expectancy. Before she dies, Rose would like to transfer her extremely valuable

art collection to her wealthy daughter. The art collection does not generate any

income, as it is just displayed in Roses home, but Rose really needs money for her

living expenses for the remainder of her life. A GRAT would be the most appropriate

transfer device to fulfill Roses desires.

(d) Earl has four children - Kenny, Tim, Aaron, and Cathy. Earls will directs all of his

property to be divided equally among his four children, and if any child predeceases

Earl, that childs heirs will inherit Earls property per capita. Earl has an estate worth

approximately $10 million and is 79 years old. A private annuity strategy may be a

good option for him to consider to reduce his exposure to Federal Estate Tax.