1. Which of the following is least likely to be contained in Ted's marital trust for the benefit ofMaria?
A. General power of appointment
B. Special power of appointment
C. Ability to name her creditors as payees
D. Full withdrawal rights
2. Fred's current trust can best be described as:
A. A funded revocable living trust
B. A simple trust with Crummey provisions
C. An irrevocable trust
D. A complex trust with a general power of appointment
3. If Ted dies, which of the following best describes his trust?
A. The trust retains its revocable character because it is a simple trust.
B. The trust becomes irrevocable.
C.The residuary must becomes irrevocable, but the marital trust is revocable.
D. The marital trust becomes irrevocable, but the residuary trust is revocable.
4. Considering the current situation for the extended Ferris family, which of the following is the mostviable technique to accomplish one or more of the stated objectives?
A. Transferring Fred's business interest to a GRUT, with Fred receiving 6% annual income, andthe remainder passing to Ted after 13 years
B. A gift of a present interest from Fred to Ted of the entirety of Fred's fractional businessholdings, and Fred and Mary electing gift-splitting to avoid gift tax.
C. Placing Fred and Mary's home into a 20-year QPRT, with Ted and Maria as remainderbeneficiaries.
D. A buy-sell agreement funded with life insurance (premiums paid by Fred), allowing Ted purchase Fred's shares at his death
5. Which of the following transfers would involve the smallest taxable gift?
A. Transfer of the growth fund to a 10-year GRA T with a 6% payout
B. Transfer of the value fund to a 15-year GRA T with a 6% payout
C. Transfer of the short-term fixed-income fund to a I5-year GRUT, using an 8% payout
D. Transfer of the home to a to-year QPRT