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A woman is the income beneficiary of an irrevocable trust. All the following powers held by her will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes EXCEPT:
Suggested Answer: C
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22 comments · newest first
LI
Lindsey
10 months ago
C is tricky, but I think it’s still includible.
RA
Ranee
11 months ago
B and D definitely include assets, no doubt!
AL
Alesia
11 months ago
Wait, how does A not count? Seems odd.
LE
Leslie
11 months ago
Totally agree, A is the exception here.
AL
Alton
11 months ago
A is the correct answer!
MI
Mireya
12 months ago
I recall that testamentary powers can have different implications. I lean towards option A being the right answer, but I could see how the others might also be tricky.
AM
Amber
12 months ago
This question reminds me of a practice question we did on trust powers. I think the power to distribute to her children could be problematic, but I'm not entirely confident.
CR
Cristen
12 months ago
I think the key here is understanding the difference between general and limited powers. I feel like option A might be the exception, but I need to double-check.
ED
Edelmira
1 year ago
I remember discussing how certain powers can lead to inclusion in the gross estate, but I'm not sure about the testamentary power for estate taxes.
LE
Leota
1 year ago
This is a good example of the type of nuanced trust and estate question we need to be prepared for. I'll make sure to review the relevant rules around powers of appointment and trust inclusions before the exam.
SA
Sabine
1 year ago
I'm pretty confident I know the answer to this. The testamentary power to direct the trustee to pay her estate taxes would not cause the trust assets to be included in her gross estate. The other options would all result in inclusion.
LA
Laura
1 year ago
Hmm, I'm a bit confused. I know the question is testing our understanding of how certain powers over an irrevocable trust can impact the beneficiary's estate. I'll need to re-read the options carefully.
RE
Reyes
1 year ago
Okay, I think I've got this. The key is to identify the one power that would NOT cause the trust assets to be included in the beneficiary's estate. Let me think this through...
LE
Lelia
1 year ago
This seems like a tricky question. I'll need to carefully review the details about which powers over the trust assets would cause them to be included in the beneficiary's estate for tax purposes.
MA
Ma
1 year ago
Hmm, I'm a bit unsure about this one. I'm thinking option B might be the way to go - a dynamic Lightning page to remind the rep to create the renewal. That way, it's more of a manual process, but the rep still has the info they need.
RO
Rodolfo
1 year ago
Hmm, I'm not entirely sure about this one. The two tables look similar, but I'm not seeing an obvious difference that would indicate the specific action taken. I'll need to analyze the options more closely.
HY
Hyman
1 year ago
Hmm, I'm a bit confused on this one. I know the third radio is used for something specific, but I can't quite remember what. I'll have to think this through carefully.
HA
Haydee
1 year ago
This looks like a straightforward privacy question. I'd start by considering the key privacy principles and techniques that could be applied here.
LE
Lezlie
2 years ago
But wouldn't D) the testamentary power to direct the trustee to pay trust assets to her estate also make the assets includible in her gross estate?
WI
Wilda
2 years ago
I agree with Iluminada, because if she can direct the trustee to distribute trust corpus to her, that means she has control over the assets.
DI
Dick
2 years ago
Actually, I believe it's C) the testamentary special or limited power to direct the trustee to distribute trust assets to her children.
IL
Iluminada
2 years ago
I think the answer is B) the power to direct the trustee to distribute trust corpus to her.