1. For gift tax purposes, upon the creation of a grantor retained interest trust, the interest retained by the grantor must be a qualified interest. A qualified interest reduces the value of the taxable gift made to the remainder beneficiaries of such a trust. All of the following are qualified interests except:
Annuity Interest.
Unitrust Interest.
QTIP Interest.
Remainder Interest.
2. A tax basis, or joint irrevocable trust, might be suggested in which situation?
With a very large estate where each spouse owns significant assets.
With a cheap client.
With a smaller estate where one spouse owns a majority of appreciated assets.
a. III only
b. I, and II, and III
c. I only
d. I and II