Gary and Georgeann have the following objectives: If Gary predeceases Georgeann, to provide her exclusively with a mandatory stream of income from the assets included in his gross estate To ensure that Gary's children from his prior marriage will ultimately receive the income-producing assets upon Georgeann's death To prevent assets used to provide income to Georgeann from being included in her gross estate Which of the following estate planning techniques would accomplish the Gary and Georgeann's first objective of providing a mandatory stream of income? A power of appointment (A) trust A qualified terminable interest property (QTIP) (C) trust, with an election A QTIP (C) trust, without an election     A) II and III     B) I only     C) II only     D) I, II, and III

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter18: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 18DQ
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Gary and Georgeann have the following objectives:

  • If Gary predeceases Georgeann, to provide her exclusively with a mandatory stream of income from the assets included in his gross estate
  • To ensure that Gary's children from his prior marriage will ultimately receive the income-producing assets upon Georgeann's death
  • To prevent assets used to provide income to Georgeann from being included in her gross estate

Which of the following estate planning techniques would accomplish the Gary and Georgeann's first objective of providing a mandatory stream of income?

  1. A power of appointment (A) trust
  2. A qualified terminable interest property (QTIP) (C) trust, with an election
  3. A QTIP (C) trust, without an election
 
 
A)
II and III
 
 
B)
I only
 
 
C)
II only
 
 
D)
I, II, and III
 
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