Jeremiah Validly Sought to Create a Fully Secret Trust with Mawlowkowski

question 1

Multiple Choice

Jeremiah validly sought to create a fully secret trust with Mawlowkowski, for Jeremiah's mistress, Vamilda. All the necessary requirements were fulfilled. Jeremiah fell ill with cancer, and, when Jeremiah fell into a coma, Beth, his partner, called Mawlowkowski to come and see him. Unfortunately, Mawlowkowski was killed outright in a car crash on his way to visit Jeremiah. Jeremiah died ten minutes later.
The residuary legatee under the will is Beth.
Consider the effect of the transaction

• A) The property should be held for Beth, as Mawlowkowski has predeceased Jeremiah.
• B) The property should be held for Vamilda, as there could be no communication of revocation of the trust to Jeremiah, as he was in a coma.
• C) The property should be held for Vamilda, as the secret trust, as an inter vivos gift, was completed at the time Jeremiah's will was drawn up.
• D) The property should be held for Beth, as Vamilda cannot be discovered as the trust was a fully secret trust, so the 'secret' died with Mawlowkowski.

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Definitions:

Pension Plan

A type of retirement plan that typically provides retirees with a fixed payout upon retirement, funded by employer, employee contributions, or both during their employment years.

Coverdell Education

A savings account designed specifically for paying education expenses, with tax advantages, for a designated beneficiary.

AGI

Adjusted Gross Income, which is the total gross income minus specific deductions allowable by the IRS, forming the basis for calculating taxable income.

Maximum Contribution

Maximum Contribution refers to the highest amount that an individual or entity can contribute to a retirement plan or investment vehicle in a given year.