Assume an AB Trust plan ( Survivor's Trust-Exemption Trust) is adopted to minimize death taxes on the deaths of both Husband and Wife (both U.S. citizens). Assume Husband is the first to die. Husband and Wife are not concerned about achieving and income tax basis step-up upon their deaths. Continue to indicate whether the following statements are true or false:
1. Wife should be given the right to designate her estate as the beneficiary of the assets remaining in the Exemption Trust at her death.
2. Wife should be given the right to invade principal of the Survivor's Trust with or without regard to her accustomed standard of living.
3. Wife may be named as the Trustee of the Exemption Trust only if she is not the holder of a limited power of appointment over the Exemption Trust.
4. If Husband had left his entire estate to the survivor's Trust, there would have been no federal estate tax paid on his death.