Which of the following statements regarding dynasty trusts is true?

I. A dynasty trust can give a beneficiary a limited power of appointment without causing inclusion of the trust's assets in the beneficiary's gross estate.

II. A dynasty trust will not vest its ownership in each generation of beneficiaries.

III. The income of a dynasty trust is always taxed at the trust level, regardless of distributions during the calendar year, since ownership does not vest in the beneficiaries.

IV. A dynasty trust with an inclusion ratio of 0 may select a fiscal year for income tax accounting purposes.

1. I Only
2. II Only
3. III & IV only
4. I and II Only
5. I, II, III and IV