American College Exam HS330 Topic 1 Question 81 Discussion

Actual exam question for American College's HS330 exam

Question #: 81
Topic #: 1

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:

Athe testamentary power to direct the trustee to use trust assets to pay her estate taxes

Bthe power to direct the trustee to distribute trust corpus to her

Cthe testamentary special or limited power to direct the trustee to distribute trust assets to her children

Dthe testamentary power to direct the trustee to pay trust assets to her estate

Show Suggested Answer

Suggested Answer: C

by Daren at Feb 11, 2024, 09:06 PM

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Lezlie

10 months 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?

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Wilda

11 months 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.

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Dick

11 months ago

Actually, I believe it's C) the testamentary special or limited power to direct the trustee to distribute trust assets to her children.

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Iluminada

11 months ago

I think the answer is B) the power to direct the trustee to distribute trust corpus to her.

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